China's Copper Imports Fall Another 25% in Aug

SHANGHAI, Sept. 23 -- China's copper imports fell 25% in August for the second month running as demand continued to weaken after record imports in the first half.

    Imports of refined copper fell 25% from July to 219,731 mt in August, although still 152% higher year-on-year, according to Chinese customs.

    "It is all expected, [whether it is] the drop in August or more falls in coming months," said a trader in Shanghai. "China can either save the world, or negatively affect it."

    China's robust imports at the beginning of the year boosted global base metal prices which eventually dampened imports, he said.

    Market participants predicted earlier this month that imports would continue to fall in August and for the rest of the year.

    The domestic copper market has been in premiums for months while Shanghai Futures Exchange (SHFE) warehouses are holding the highest copper inventory levels in six years.

    SHFE copper stocks went up 6,852 mt to reach 104,248 mt last week while spot copper traded in Shanghai was quoted at RMB 48,900-49,050/mt on Tuesday, with a premium of RMB 150/mt.

    Meanwhile, China's copper scrap imports returned to a more normal level of 392,121 mt in August, said market participants.

    Copper scrap imports fell 12.5% from July to 392,121 mt in August, 21% lower year-on-year, according to Chinese customs.

    "The rebound in July's imports was abnormal and mostly due to delivery delays at Guangdong Customs" as part of crackdown on tax evasion, said an analyst in Shanghai.

    "The August figure more accurately reflects copper scrap supply in China, with no sign of recovery in the secondary market," she added.

    Meanwhile, China also imported 529,156 mt of copper ore and concentrate in August, down 5% from July and 65% higher year-on-year, according to Chinese customs.

    (Source: Metal Bulletin)