China's Imports of Copper Concentrate from Some American Countries Declined in December 2022

SHANGHAI, Jan 31 — In December 2022, China imported 2.103 million mt of copper ore and its concentrate, an increase of 2.09% year-on-year. From January to December 2022, China imported 25.318 million mt of copper ore and its concentrate, a cumulative increase of 8.07% year-on-year. The volume began to fall from a high level after hitting a monthly high in November 2022. China's copper concentrate imports from some American countries (Peru, the United States and Panama) reached 635,000 mt, a decrease of 16.6% from the previous month, and a month-on-month reduction of 126,600 mt.

SMM had predicted that the amount of copper concentrate shipped to China from the Americas could hardly remain as high as that in November 2022. From November to December 2022, the production and shipping of some countries in South America were affected by some industrial accidents. That, combined with the ending of stockpiling by Chinese smelters for the production in winter directly led to the month-on-month decline in copper concentrate imports in December 2022.

1. According to foreign media reports, starting from December 2022, due to dissatisfaction with the removal and arrest of former Peruvian President Pedro Castillo by the Congress, fierce protests broke out in Peru to put pressure on the new government and entered a state of emergency. Political protests affected Peru’s mine production and port transportation, road logistics and other aspects of Peruvian society.
2. It is reported that the Las Bambas and Antapaccay copper mines in Peru have been hit by political protests, resulting in blockages of delivery. The road via which MMG's Las Bambas mine delivers its ore was blocked, and the waterworks and staff dormitories of Glencore's Antapaccay copper mine were damaged. Copper mine production efficiency was reduced. In addition, two trucks on the shared section of the ore transportation road of Las Bambas and Antapaccay mines were burned by demonstrators, which directly blocked ore shipments.
3. From November to December 2022, a series of large-scale truck driver strikes and protests took place in major ports in the United States. The large-scale strike of truck drivers in Oakland, California has basically stopped ground transportation operations at the third largest port in California, and the strikes of truck drivers at the ports of Los Angeles and Long Beach in the United States have caused traffic paralysis and congestion at the terminals. The suspension of logistics and transportation in the United States has to a certain extent caused a sharp decrease in the amount of copper concentrate exported from the United States to China in December 2022, with a month-on-month decline of 85,000 mt.
4. The stockpiling for the production in winter by Chinese smelters came to an end, and arriving shipments of raw materials scheduled to arrive in December fell short of those in November.