Why China’s Unwrought Copper and Copper Semis Imports Surge in November?

SHANGHAI, Dec. 9 (SMM) - China’s imports of unwrought copper and copper semis witnessed big growth in November. Imports of unwrought copper and copper semis increased 31% month-on-month to 380,000 tonnes in November, according to China Customs.

What’s behind the surge in unwrought copper and copper semis imports after sliding for seven months in a row?

This is due mainly to four reasons, SMM said.

First, importers had been actively importing goods due to expectations of yuan’s further devaluation, which may expand import losses. Devaluation in the Chinese yuan has accelerated after its inclusion in the Special Drawing Right (SDR) October 1.

Second, producers and traders stepped up imports at the year’s end out of credit extension consideration at banks next year, although import window remained closed most of this year, SMM added.

Third, copper imports had arbitrage opportunity at one point in October.

Meanwhile, China’s November imports were around the average level for the year.

Imports of unwrought copper and copper semis totaled 4.46 million tonnes in the first eleven months of the year, a rise of 4.3% year-on-year, China Customs data show. 

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