October copper concentrate imports to China rebounded sharply

SHANGHAI, Nov 27 (SMM) – China’s imports of copper concentrate rose in October after two months of decline, as supply from Indonesia recovered after PT Freeport obtained additional export quotas.

China customs data under 10-digit HS code showed that China imported 1.91 million mt of copper concentrate last month, up 21.15% month on month and 21.97% year on year.

Imports in the first 10 months of 2019 came in at 17.94 million mt, up 8.24% from the same period last year.

Last month, 93,000 mt of copper concentrate was imported to China from Indonesia, compared to zero imports in September.

The Indonesian Energy and Mineral Resources Ministry in September tripled copper concentrate export quota for Freeport for the year ended March 2020 to 700,000 wmt, up from an initial quota of 198,282 wmt. This boosted exports of mined concentrate from the company’s giant Grasberg mine, and helped ease downward pressure on treatment charges.

The recovery of copper concentrate imports from South America also contributed to higher imports last month, as August to September imports from those regions were limited by production and shipping disruptions in the first half of the year.

China also saw greater copper concentrate imports from Panama in October, as First Quantum’s Cobre Panama project ramped up.

Imports of copper concentrate are expected to remain above 1.8 million mt in November, in anticipation of shipments from Grasberg as Freeport has yet to run out of export quota.

Arrivals from South America are also likely to stay at high levels.

Growing demand from smelters will also improve China’s appetite for seaborne copper concentrate, as newly-commissioned projects such as Zijin Mining’s plant in Heilongjiang, Chifeng Jinfeng and Guangxi Nanguo, are ramping up.