SHANGHAI, Aug. 24 (SMM) –According to China Customs, China's imports of copper concentrate during July were 453 kt, significantly down 143 kt from June.
SMM believes the declines in July copper concentrate imports were due mainly to the concentrated release of June's copper concentrate imports. As long-term contracts for imported copper concentrate 2011 had to be executed by June, and since TC/RCs for long-term contracts for 1H 2011 at USD 72/mt (cents 7.2/lbs) barely had advantages compared with spot TC/RCs at USD 100/mt (cents 10.0/lbs), and together with an unfavorable SHFE/LME copper price ratio, copper smelters postponed the execution of long-term contracts till June.
Since the start of July, as long-term copper concentrate contracts for 2H were signed at USD 90/mt (cents 9.0/lbs), copper concentrate imports steadily returned around 450 kt.
Moreover, as the SHFE/LME copper price ratio improves in August, it will stimulate copper smelter's enthusiasm in importing copper concentrate, so SMM believes imports of copper concentrate will increase in August.