Home / Metal News / Chinese copper imports likely to drop by 10% in 2016, says major buyer

Chinese copper imports likely to drop by 10% in 2016, says major buyer

iconNov 17, 2015 09:25
Source:SMM
Stephen Huang, CEO, Arc Resources Co. predicts 10% decline in Chinese copper imports during next year.

By Anil Mathews (ScrapMonster Author)

November 16, 2015 06:39:44 AM

BEIJING (Scrap Monster): According to Stephen Huang, CEO, Arc Resources Co., the slowdown in Chinese economy has led to erosion of metals demand in the country.

The refined copper imports by China have dropped significantly in 2015. According to latest Customs statistics, the shipments during the initial nine-month period of the current year totaled 2.55 million metric tons, almost down by 4% when matched with the imports during the corresponding nine-month period in 2014. The trend is likely to continue in 2016. The Chinese refined copper purchases during 2016 are likely to decline by 10%, he said.

Weak consumption demand, higher domestic supplies and lesser use of the metal as collateral for loans are being cited as the main factors that are likely to contribute to the projected drop in purchases.

The Chinese copper demand growth is likely to slow to 2% per annum in the next several years, Huang stated. It must be noted that the country had reported a demand growth of 11% in 2013 and 6% in 2014. Only a major recovery in the country’s copper demand will help to balance the market situation as growing metal supplies may lead to huge supply surplus. Recent surveys hint at a copper market surplus of 349,000 tonnes in 2015, followed by a surplus of 177,000 in 2016. Meantime, Chinese refined copper production rose 6.8% during Jan-Oct ’15 to total 6.5 million tons.

The launch of a probe into financial irregularities at China’s Port of Qingdao in June last year has reduced copper’s usage as collateral for financing.

The slowdown in economy of the world’s major metals consumer has resulted in sharp drop in prices of commodities. Copper prices have plunged to six-year lows. The prices have dropped by more than 3% during the past week alone. The expectations remain high of a possible interest rate hike by the US Fed during its mid-December meeting. The rising strength in dollar may add further pressure to commodity prices.


Chinese copper imports

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

SMM Events & Webinars

All