Chinese Imports of Copper Concentrate from the Americas Burgeon Sharply MoM in November 2022

SHANGHAI, Dec 29 (SMM) - China imported 2.41 million mt of copper ore and concentrate in November 2022 in physical content, a year-on-year increase of 10.26%, setting a new monthly high. The import volume totalled 23.17 million mt in physical content from January to November, up 8.56% year-on-year. Imports from major American countries (Chile, Peru, Mexico, Canada, the US and Panama) reached 1.66 million mt in physical content, up 44.4% or 509,000 mt MoM.
However, in December, disturbances on the supply side and port operations occurred frequently. Therefore, SMM expects that the follow-up MoM growth of concentrate shipments from the Americas to China cannot be maintained at the same level.

1. The fire at the Ventanas port in Chile has affected the shipment of products from the major Chilean copper mines. SMM predicts that the port fire will have an impact on the shipments of copper concentrates for two months, seriously hindering the shipments from some of the major mines in Chile. According to SMM research, although the port fire is a short-term event, it directly affects the quotations of copper concentrates which were scheduled to be shipped in January 2023. Some spot clean concentrates were traded at $81-82/mt between traders and smelters this week, which were scheduled to be shipped in January 2023, owing to the smelters’ concerns on the port operations.

2. In Peru, Pedro Castillo was dismissed by Congress and arrested. A fierce protest broke out in the country, putting pressure on the new government. As a result, the Peruvian government announced a state of emergency. The protest spread to Matarani port and hindered the shipment of copper concentrates.

3. According to foreign media, a Peruvian community once again blocked an important road near Cusco, Canchis Province, and other roads in Canchis were also hindered by protesters. Therefore, the warehousing capacity of the Las Bambas copper mine was about to reach its limit, which increased the probability of the mine's production reduction or suspension. The in-plant copper concentrate inventory has ballooned to about 500,000 mt (about 125,000 mt in metal content), and Las Bambas has taken emergency measures to maintain its production until the end of the year.

4. In early December, truck drivers in the US freight industry went on strike, weighing greatly on the US copper concentrate exports in the month.