China Cu Import Data Analysis in July 2012

SHANGHAI, Aug. 27 (SMM) –

Copper Concentrate
China's imports of copper concentrate in July were 566,000 mt (physical contents), up 85,300 mt MoM (around 20,000 mt in metal contents). Some copper smelters have gradually resumed production in August following maintenance in July, so copper concentrate demand has increased. Tight scrap copper supply has also compelled smelters to adjust copper production, but an increase in imports of  copper concentrate during July will ensure copper smelters produce refined copper at normal levels during August.

Refined Copper
China's imports of refined copper during July were 254,300 mt, up slightly by 4,242 mt from June. The average loss for spot imported copper during July was RMB 1,300/mt, nearly doubled the loss from June, but this growing loss still failed to slow refined copper imports, which were still around 250,000 mt. Refined copper ordered in late June when the SHFE/LME copper price ratio was favorable arrived at Chinese ports in early July, while high monthly amount of long-term copper contracts also contributed to a slight MoM increase in July's refined copper imports. During August, sluggish downstream demand and restriction on RMB L/Cs have significantly slowed activity in spot imported copper markets, causing spot premiums for imported copper to fall slightly from July levels. In this context, SMM expects China's refined copper imports during August may fall, but still remain above 200,000 mt when considering the stable supply from long-term copper contracts.