China Refined Copper Imports Hit 22-Month Low in April, Exports Stage First Decline in 8 Months

SHANGHAI, May 22 (SMM) – China’s refined copper imports hit a low never seen since June 2011 in April, and exports dropped for the first time in eight months, according to Bloomberg. 

 

China Customs reported that China’s refined copper imports were 183,023 mt exports fell 52% to 29,072 in April from March’s 60,642 mt. Data from Bloomberg show that China’s copper imports were 218,823 mt in March and 272,903 mt in April 2012. 

 

The falling imports caused SHFE copper inventories to slip last week to their lowest in seven months, leaving higher profits for arbitragers purchasing goods in London market at lower prices and selling in Shanghai. This may help lift imports and curb exports in the next few months.

 

Liang Lijuan, analyst from COFCO Futures said in an interview that the ratio of arbitrage remains a major factor affecting foreign trade given normal liquidity. Liang expects copper imports to increase and exports to fall.

 

SHFE 1309 copper contract price rose 1.7% to close at RMB 53,420/mt (USD 8,713/mt), considering the 17% VAT, the price is USD 43/mt higher than the LME three-month contract price of USD 7,410/mt.

 

Standard Bank Group reported that rising copper demand in Q2 may be caused by speculative buying of Chinese manufacturers holding low inventories, and the strong demand will unlikely continue into summer. 

 

According to China Customs, copper concentrate imports surged to 842,838 mt in April, compared with 777,838 mt in March and the 474,903 mt for the same period last year. Copper concentrate imports through the first four months were 3.06 million mt, up 37% YoY.

 

China’s scrap copper imports fell 9% to 336,634 mt in April, and imports through the first four months fell 4.7% to 1.37 million mt. Of them, imports from the US slipped 8% to 72,413 mt. 

 

Edited by SMM