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China’s Copper Conc. Imports Climb to Record High in Jan. on High TC/RCs

iconFeb 18, 2014 00:34
Source:SMM
China’s copper concentrate imports hit a new all-time high of 1.04 million tons in January, due largely to high TC/RCs for the resource.

SHANGHAI, Feb. 17 (SMM) – China’s copper concentrate imports hit a new all-time high of 1.04 million tons in January, due largely to high TC/RCs for the raw material.

The import volume was 289,000 tons, or 36.7%, more than a year ago, and also up 0.02% from December.

TC/RCs for copper concentrate remained high at $120-130 per ton and 12-13 cents per pound during the second half of December. The lucrative trade encouraged some smelters and traders to import concentrate despite high inventories at hand, SMM’s copper analyst Zhu Wenjun said.

Most smelters stepped up concentrate purchases since October last year when TC/RCs for the resource started climbing, and were thus sitting on high stocks in late 2013. Meanwhile, China’s economic restructuring and inflationary pressures did not allow the central government to loosen monetary policies during H2 2013. In this context, copper smelters under heavy inventory and financial pressures were forced to postpone the delivery of copper concentrate till January.

Growing production at foreign copper mines was also contributed to the record high concentrate imports. Foreign mining companies mostly reported increases in output during the final quarter of 2013, leaving ample supply of copper concentrate. Being pessimistic about copper prices for H1 2014, mines and traders overseas accepted higher TC/RCs to promote sales.

Some SME Chinese  smelters also stocked raw materials before the Chinese New Year holiday.

Zhu expects copper concentrate imports to fall in February given high inventories at copper smelters. An export duty imposed on copper concentrate exports by Indonesia’s government will also undermine selling interest of foreign mining enterprises.

 

China copper trade wrap
China copper concentrate imports

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