SHANGHAI, Aug. 3 (SMM) – Customs data indicated a 20.22% year-on-year rise in China’s scrap copper imports in June, but SMM estimates that the import volumes will fall below 300,000 tonnes again in July.
China imported 316,700 tonnes of scrap copper in June, the highest so far this year, but still below the 2014 average.
A lack of profits from scrap importation, China’s environmental protection crackdowns, and waning demand have combined to push down the copper scrap imports.
“The higher SHFE/LME copper price ratio seemed to favor scrap imports in July, but poor demand may drive scrap copper imports below 300,000 tonnes,” SMM analyst predicts.
Many secondary copper producers preferred blister copper or copper anode over scrap. SMM also learned that most scrap consumers cut or ceased production forced by either thin profits or China’s tough environmental protection inspections.
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