Copper Pares Gains on Supply Concerns as Chinese Imports Soar

LONDON, July 13 -- Copper pared gains in Asia on concern that supply may outpace demand in China as the country's imports of the metal climbed to a record for a fifth month ahead of the seasonally slow consumption period.

    Shipments of copper and its products into China, the world's largest user, increased to 475,999 metric tons in June, topping May's record figure, government data showed July 10. The surge in imports was driven by China's 4 trillion yuan ($585 billion) stimulus plan to revive economic growth, purchasing by the country's State Reserve Bureau and shortages of scrap.

    "This may be the last batch of copper bought by the State Reserve Bureau," Jiang Donglin, manager at Shenzhen Zhongjin Lingnan Nonfemet Co.'s research department, said today. "Most investors still feel imports will drop in the coming months as it has been unprofitable to buy overseas copper since May."

    Three-month delivery copper on the London Metal Exchange traded at $4,870 a ton at 10:25 a.m. in Singapore, a gain of 0.3 percent. Earlier, the contract gained 1.2 percent to $4,915 a ton as the dollar weakened against the euro, boosting the attractiveness of raw materials priced in the U.S. currency.

    October-delivery copper on the Shanghai Futures Exchange added as much as 1.3 percent to 39,900 yuan ($5,839) a ton, before trading at 39,390 yuan. Copper for September delivery in New York was little changed at $2.2085 a pound, after gaining as much as 1.1 percent to $2.2355 earlier.

    Fourteen of 18 analysts, investors and traders surveyed by Bloomberg, or 78 percent, said copper would fall this week on speculation that demand won't rebound any time soon. The remainder expected prices to rise.

    Among other LME-traded metals, aluminum was little changed at $1,574 a ton, lead dropped 0.4 percent to $1,590 a ton and nickel gained 1.5 percent to $14,700 a ton. Tin climbed 1.9 percent to $12,225 a ton, while zinc added 0.4 percent to $1,499.50 as of 10:23 a.m. in Singapore.

    (Source: Bloomberg)