[Cu] Supply of Imported Copper to Rise Due to Increasing SHFE/LME Copper Price Ratio-Shanghai Metals Market

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[Cu] Supply of Imported Copper to Rise Due to Increasing SHFE/LME Copper Price Ratio

Data Analysis 01:16:23PM Dec 07, 2009 Source:SMM

SHANGHAI, Sept.12(CBI China) -- Last week, due to soaring SHFE/LME copper price ratio in early September, copper imports were profitable for the first time since January 2008, reaching RMB 2,000-3,000/mt.  Goods in bonded warehouses will now enter China's domestic markets, and future arrivals of imported copper will likely grow.

    Imports were unprofitable at previous SHFE/LME copper price ratios.  Demand was soft as well, causing downstream producers to delay or cancel copper imports.  Large quantities of copper have piled up at Shanghai and neighboring bonded warehouses since July, with market estimates of 70kt, sufficient for one week's consumption throughout China.  Supplies of imported copper will spike in late September or early October due to delays of customs applications and shipments, and in this context, present high premiums in domestic spot markets will gradually fall.

 

Copyright © 2008, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: steelresearch@cbichina.com or tel:86-21-51550040

Key Words:  copper Cu  import export 

[Cu] Supply of Imported Copper to Rise Due to Increasing SHFE/LME Copper Price Ratio

Data Analysis 01:16:23PM Dec 07, 2009 Source:SMM

SHANGHAI, Sept.12(CBI China) -- Last week, due to soaring SHFE/LME copper price ratio in early September, copper imports were profitable for the first time since January 2008, reaching RMB 2,000-3,000/mt.  Goods in bonded warehouses will now enter China's domestic markets, and future arrivals of imported copper will likely grow.

    Imports were unprofitable at previous SHFE/LME copper price ratios.  Demand was soft as well, causing downstream producers to delay or cancel copper imports.  Large quantities of copper have piled up at Shanghai and neighboring bonded warehouses since July, with market estimates of 70kt, sufficient for one week's consumption throughout China.  Supplies of imported copper will spike in late September or early October due to delays of customs applications and shipments, and in this context, present high premiums in domestic spot markets will gradually fall.

 

Copyright © 2008, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: steelresearch@cbichina.com or tel:86-21-51550040

Key Words:  copper Cu  import export