SHANGHAI, Jan. 18 (SMM) -- Macquarie Bank expected China’s copper imports will reach to 800,000-850,000 mt for 1Q, and 620,000 for 4Q 2009, based on the fact that SHFE copper prices were much stronger than LME copper prices, creating incentives for imports.
Macquarie Bank said China's net zinc imports for 1Q are also expected to be strong.
The broker pointed out that SHFE three-month copper prices were USD 170/mt higher than prices on the LME copper market, with arbitraging window opening for the past one and a half month. Prices on the SHFE copper market were lower than LME copper prices from August to November 2009.
Strong performance of SHFE copper prices was a sign of robust demand stimulated by the Central Government’s stimulus packages, as well as its loose monetary policy.
(Edited by SMM)