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.
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