China June Imports of Copper, Products Rose to Record

BEIJING, July 13 -- China's imports of copper and its products rose to a record in June, advancing by 13 percent from the previous month, as investment growth buoyed demand in the world's largest consumer.

    Imports increased to 475,999 metric tons last month, according to preliminary data released by the Beijing-based customs office today. Imports were 422,666 tons in May, according to Bloomberg data.

    China's manufacturing expanded for a fourth month in June as a 4 trillion yuan ($585 billion) stimulus plan and record bank lending help revive the world's third-largest economy. A lending boom sparked a 32.9 percent surge in urban fixed-asset investment in the first five months, the fastest growth in five years.

    "China's fixed-asset investment has had a positive impact on copper demand, so the demand situation is a little better than we had earlier expected," said Cai Luoyi, Shanghai-based analyst at Shanghai CIFCO Futures Co. "Record June imports were expected, but from July, imports will drop sharply."

    Copper imports by China may plunge 64 percent to around 100,000 metric tons a month in the second half after record shipments this year led to excess stocks, UBS AG said July 6.

    Copper importing turned unprofitable since May, according to data compiled by Bloomberg. Still, shipping in the metal as a way to obtain finance is very active, Yang Gang, a trader at LG International Corp. said, referring to the credit terms traders can obtain from banks.

    Positive Sign

    "This should be positive," said Randy North, a trader at RBC Capital Markets in London. "Everybody's been saying they'd be way down."

    Imports of copper and copper products soared also as scrap supply plunged and the State Reserve Bureau probably boosted inventories. Caijing magazine reported in June that China has bought 235,000 tons of copper for strategic reserves this year, citing Yu Dongming, a Chinese government official.

    China's scrap copper imports were 280,000 tons in June, customs data showed, without a comparison. That's 15 percent less then the 330,000 tons in May, according to customs data.

    The country may have built up to 400,000 tons of copper stocks in the first half because of sizeable imports and a seasonal slowdown in demand, Macquarie Group Ltd. said July 6.

    The country's imports of aluminum and products in June were 353,218 tons last month, customs said. That's compared with 331,740 tons of imports in May, customs data showed.

    Aluminum exports were 22,182 tons in June, it said. That's compared with 9,750 tons of exports in May, according to customs.

    (Source: Bloomberg)