Why China Copper Imports Grow in November amid Weak Demand?

SHANGHAI, Dec. 8 (SMM) – Inbound shipments of unwrought copper and copper semis rose to a high of 2015 in November. 

Imports of unwrought copper and copper semis were 460,000 tonnes in November, up 9.5 percent on a monthly basis, according to China Customs, flat at the year’s high hit in September. 

What factors are behind high imports in November in China?

Over the month, China’s demand and SHFE/LME copper price ratio, which created import losses briefly up to more than 1,000 yuan per tonne, both gave no incentives in imports. 

“The major driver behind this is falling Yangshan copper premiums, encouraging domestic buyers to import at relatively cheap prices” SMM copper analyst explains. 

Earlier, Codelco slashed its 2016 premium to China for the refined metal to a three-year low of $98 per tonne, higher than spot import premiums.  

The Yangshan copper premiums fell to $76 per tonne in November, down from $122.5 per tonne in September, according to SMM data, averaging $80 per tonne so far this year. 

“China is not expected to see further growth in imports in December due to year-end cash tightness and Chinese yuan’s change,” says SMM analyst, expecting a month-on-month drop in December.  

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.