SHANGHAI Apr. 13 (CBI China)--On April 4th 2007, traders and manufacturers revealed domestic copper importers cancelled signed import contracts due to bullish sentiment in the global copper markets. These cancellations are expected to pull down April import quantities to the 80 thousand-100 thousand mt level. The cancelled contract goods are expected to be converted into LME warehouse stock. 5 thousand mt of contract goods have already been delivered to the LME warehouse in Busan, Korea.
Overseas suppliers without buyers are stocking goods in bonded warehouses located in Shanghai, China, sending inventories from 5 thousand mt to over 40 thousand mt within one month.
According to leading industry sources, downstream demand is currently steady, but copper pipe production may decrease in June 2007.
GroWell predicts that April imports should fall significantly compared to March levels because:
1) Many signed import contracts have been cancelled due to high imported copper prices;
2) LME prices exceed SHFE prices, resulting in negative profit margins for importers.