Home / Metal News / SMM Sees No Sharp Rise in China Copper Imports on Weak Financing Demand

SMM Sees No Sharp Rise in China Copper Imports on Weak Financing Demand

iconJun 3, 2015 18:23
Source:SMM
Although the SHFE/LME copper price ratio increased to a favorable 7.2 lately, China’s copper imports are unlikely to post sharp growth.

SHANGHAI, Jun. 3 (SMM) – Although the SHFE/LME copper price ratio increased to a favorable 7.2 lately, China’s copper imports are unlikely to post sharp growth with finance-driven demand still anemic, SMM believes.

As a reflection, the Yangshan copper premiums have been falling to $ 57.5 per tonne as of June 2, down $ 15 from late April.


Finance-driven demand has been weak due partly to bank caution towards issuance of L/Cs to metal companies, SMM understands.

“Many companies are less willing to conduct copper financing trades as lending rates in domestic market have been low following continuous interest rate cuts, and this is also dampening demand for imported copper,” SMM research team says.

Also of note is that copper inventories at SHFE registered warehouses fell more slowly, down by merely 6,583 tonnes in the week ending May 29. SMM considered it a sign of slowing copper demand from downstream producers.
 
For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn. 

 

China copper imports
Yangshan Copper Premium
China copper financing deals

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All