2009 January Cu Imports Data Analysis (Preliminary)

SHANGHAI, Jun. 12 (SMM) --
Scrap Copper:
According to statistics from China Customs, China's imports of scrap copper were 330kt during May, down 33.5% YoY, and down 17.26% MoM. YTD cumulative imports were 1.46 million mt, down 41.4% YoY. Declines in scrap copper imports were due mainly to the falling copper prices since late April, as well from stringent customs clearance procedures in Guangdong province. The new strict customs clearance procedures are expected to remain in place for some time, and with large volumes of scrap copper still in Hong Kong, scrap copper imports will likely decrease during June. Profit margins for imported scrap copper have been squeezed, as the domestic/LME copper price ratio has been falling gradually since May. In this context, CBI believes imports of scrap copper will likely be 250-300kt during June.
Unwrought Copper and Copper Semis Products:
According to statistics from China Customs, China's imports of unwrought copper and copper profile were 422.7kt during May, up 5.71% MoM, with YTD cumulative imports of 1.76 million mt, up 53% YoY. Imports of copper and copper profile continued to grow during May after copper imports hit a record high during April. China's imports of refined copper in May are expected to exceed the high level of 314 kt recorded in April 2009, indicating strong Chinese demand for refined copper, which will help support copper prices in the short term. Although the SHFE/LME copper price ratio has fallen since May, import of copper will remain high in the short term, as major international copper producers have signed long-term orders with Chinese customers, and since scrap copper supply remains limited.

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