August Copper Anode Imports Slightly Increased, Demand for Copper Anode Made from Scrap Grew [SMM Analysis]

According to data from the General Administration of Customs, China imported 75,900 mt of copper anode in August 2024, up 7.35% MoM and up 9.34% YoY. From January to August 2024, the cumulative import of copper anode was 610,900 mt, down 14.09% YoY.

By country, in August 2024, China imported 40,900 mt of copper anode from Zambia, accounting for 53.89% of the total imports, up 25.22% MoM and up 47.95% YoY. Imports from the Democratic Republic of Congo were 6,600 mt, accounting for 8.75%, down 33.69% MoM and down 55.83% YoY. Imports from Chile were 5,700 mt, accounting for 7.56%, down 54.20% MoM and down 16.74% YoY.

In August, China's copper anode imports slightly increased but remained relatively low overall. Apart from some shipments arriving concentratedly at ports due to unstable shipping schedules in Africa, there was also an increase in copper anode made from scrap from Asia. This was mainly due to the improvement in the SHFE/LME price ratio and the increase in domestic market demand. Additionally, imports from the Democratic Republic of Congo significantly declined, primarily because copper anode refineries in the region underwent maintenance in May and June.

Looking ahead, due to significant production cuts and shutdowns by domestic copper anode producers, the market remains tight. The decline in blister copper and copper anode inventory at refineries has driven up demand for imported copper anode. Coupled with profitable SHFE/LME price ratios from July to September, it is expected that imports of copper anode made from scrap may continue to grow. However, the import volume of copper anode from mines, which holds a higher weight, is still difficult to increase. It is anticipated that the total import volume of copper anode in China in 2024 will decline YoY.