China Refined-Copper Imports Gain for Second Month (Update1)

Sept. 21 (Bloomberg) -- Imports of refined copper by China, the largest consumer, gained for the second consecutive month in August, as traders ordered material to benefit from a profitable arbitrage window.

Inbound shipments totaled 267,153 metric tons last month, the General Administration of Customs said in an e-mailed report today. That’s 19 percent higher than 224,723 tons in July and 22 percent more than 219,731 tons a year earlier, according to Bloomberg calculations.

"It was profitable to import in early June, mid-June, and early July." said Li Ye, an analyst at Shanghai Jiuheng Futures Co. "This is in line with our expectations." Traders in China bought the metal in London and sold it in Shanghai to reap profits by differences in prices between the two markets. Shipping usually takes up to one-and-a-half months.

Copper stockpiles in Shanghai monitored by the Shanghai Futures Exchange have fallen almost 50 percent since the end of April, and demand usually picks up in autumn on seasonal demand, prompting Chinese trading firms to place orders.

Copper for three-month delivery on the London Metal Exchange settled at $7,715 a ton yesterday, and was unchanged at 10:53 a.m. in Shanghai.