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China's Copper Imports Refresh This Year's High in July on Fewer Re-exports

iconAug 8, 2013 14:17
Source:SMM
China’s imports of copper refreshed this year’s high in July as the government’s stricter supervision was said to have reduced inbound re-exports.

SHANGHAI, Aug. 8 (SMM) - China’s imports of copper refreshed this year’s high in July as the government’s stricter supervision was said to have reduced inbound re-exports.

Inbound shipments of unwrought copper and copper products increased 8.1% month-on-month to 410,680 tons last month, data from Chinese customs office showed today. They were 12% higher from a year ago.

``To dodge SAFE’s new rule, some importers brought in their cargoes for financing purpose instead of re-exporting as before,’’ a trader said from Shanghai, ``As a result, domestic spot price backwardation is being squeezed.’’

SMM’s daily reported spot market prices are between a contango of 50 yuan ($8.1) per ton to a backwardation of 150 yuan per ton today, down from a backwardation of 100-350 yuan a ton on August 1.

Import arbitrage has been positive as a shortage of scrap copper and smelters’ reluctance to sell have bolstered domestic prices, according to market participants.

China’s imports of scrap copper were 350,000 tons in July, up 2.9% month-on-month and down 18.6% year-on-year.

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