China’s Copper Imports Hit Highest since Qingdao Scandal of 288,661 Tonnes in Sept.

SHANGHAI, Oct. 23 (SMM) – China’s refined copper imports hit 288,661 tonnes in September, the highest monthly volumes after Qingdao’s probe into loan irregularities, Customs data indicate.

The inbound shipments rose 54,199 tonnes, or 23.11%, from August.

SMM believes four drivers were behind the spike in copper imports.

First, the SHFE/LME copper price ratio moved at 7.09-7.18 between early August and mid-September, which, combined with the 0.5% appreciation in the Chinese Yuan, allowed profits for importing activities.

Second, although banks stepped up reviews on application for L/Cs in the aftermath of the Qingdao scandal, some traders resumed financing deals after the truth was uncovered.

Third, some traders imported copper actively in September to make full use of their L/Cs which should mature by the end of the month.

Finally, importers feared that shipping activities may be hampered by the China’s National Day holiday in early October, and required goods to be delivered in September.

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