SHANGHAI, Jan 18 (SMM) – China imported 512,000 mt of unwrought copper and copper semis in December, down 8.73% from the previous month and 3.33% from the same period 2019, according to the General Administration of Customs. The import volume of unwrought copper and copper semis in 2020 stood at 6.68 million mt, a significant increase of 34.13% from 2019.
Source: SMM
The most noticeable increase in imports in 2020 occurred in June-October as the import window which opened for an extended period drove large influx of imported copper. Domestic copper consumption recovered rapidly in Q2, while smelters conducted maintenance. Tight copper supply bolstered SHFE copper prices. Imported copper made up for the supply gap. In addition to shipments under small orders from overseas smelters, LME copper inventory in Asia transferred by traders also led to a large influx of imported copper. The record high import volume was partly due to stockpiling by the State Reserve Bureau. Some of the imported copper flowed to the State Reserve Bureau and became invisible stocks.
Demand was weak in Q3 and the import window hardly opened, muting trades of seaborne cargoes. Imported copper supply tightened in December due to transportation issues amid surging exports, intensified situation of COVID-19 and cargoes piled up at overseas ports. Shipments from Chile were deferred due to sea storms. Some shipments expected to arrive in December have been delayed for over one month. Limited supply of imported cargoes has prompted sellers to hold prices firm recently. Based on data of unwrought copper and copper semis, the import volume of copper cathode should fall to 310,000 mt in December. Imports in January are expected to shrink to 300,000 mt.
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