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SMM Sees Limited Impact from Qingdao Case on China's June Copper Imports

iconJul 17, 2014 14:26
Source:SMM
China’s imports of unwrought copper and copper semis fell 7.89% on the month and 7.88% year-on-year in June to 350,000 tonnes, the lowest monthly volume this year.

SHANGHAI, Jul. 17 (SMM) – China’s imports of unwrought copper and copper semis fell 7.89% on the month and 7.88% year-on-year in June to 350,000 tonnes, the lowest monthly volume this year, China Customs reported. Some have attributed this fall in import volumes to the Qingdao metal financing probe. SMM, however, sees only a limited impact from the Qingdao case on inbound shipments.

Although banks restricted issuance of L/Cs collateralized by bonded warehouse receipts in the wake of the scandal, demand of bills of lading surged. This was reflected in the widening premium gap between warehouse receipts and bills of lading.

SMM ascribes the decline in June imports partly to delay or cancelation of some Codelco shipments caused by production problems. In addition, foreign traders have preferred to ship to other Asian countries after the premiums of copper shipped to China plunged to $50 per tonne in June.

China’s imported 2.52 million tonnes of unwrought copper and copper semis during the first half of this year, up 25.90% from a year ago, according to Customs data.
 

China copper trade wrap
China copper imports
Qingdao probe

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