CHINA September 13 2016 4:48 PM
BEIJING (Scrap Register): China’s copper demand growth is expected to slow to 0.8 percent in the second half, from 2.1 percent in the first half. The prices averaged $4,700 a ton in Q4, up from around $4,600 a ton currently, then falling to below $4,500 in 2017 as mine supply grows.
Increasing Chinese copper demand with traders attracted by cheap premiums and weak global prices is expected to recover China's copper imports this month after 12 months low in August.
China’s improved copper demand has been reflected in a rise in premiums to $50 last week from around four-year lows at $45, and in the first drop in China’s bonded inventories since April, according to brokers.
The import loss was at a level that became a bit more bearable, so there is going to be a bit more imports of metals moving from bonded to China stocks from late August to September. Still, an oversupply in China is unlikely to quickly disappear. Exports of its surplus requirements helped boost LME copper stocks by 60 percent in the past month.