Copper concentrate imports dropped slightly in April

SHANGHAI, Jun 2 (SMM) – China's copper concentrate imports were 1.92 million mt in April, down 11.51% month on month and 5.32% year on year. Imports totalled 7.88 million mt from January to April, up 4.05% year on year.

The decline was mainly due to the impact of road blockage by local communities in Peru and high import volume in March. Road blockage by local communities forced Antapaccay mine in Peru to suspend operations and hindered the transportation of LasBambas and Constantia.

The National Union of Transporters and Drivers (GNTC) launched indefinite strike on March 15, leading to a 26% drop in imports from Peru (MoM basis). Imports from Chile fell 22% month-on-month due to concentrated arrivals in March after shipping problems eased. The Mongolian OT mine was suspended for two weeks due to COVID-19 outbreak in early March, resulting in a 12% decline in imports from Mongolia.

However, increased imports from some countries, such as Kazakhstan and Spain, partly made up for decline in imports from South America.

Supply disruptions in South America have eased. Despite news of tax increase by the government, nationalisation of mines and the Iceberg Act, SMM sees little possibility that these will become a reality in the short term. In the long run, it remains unclear whether these policies will be implemented. The sustainable recovery of TCs indicates that tight supply in the copper ore market has eased. Copper concentrate imports are expected to stabilise in May.