copper drying up in china

Chinese copper imports were depressed for most of 2006, sinking 18 percent, as the State Reserves Bureau (SRB) sold about 180,000 tonnes of copper it had built up earlier, and as domestic smelters rapidly expanded output to profit from record prices.

But customs statistics released Thursday showed that imports began to perk up again in the last months of the year, setting the stage for 2007 when Chinese demand will be very much in the spotlight.

China's imports of copper, including semi-finished products, in December hit 206,808 tonnes, their highest monthly level for all of 2006. Export figures were not released by customs, but traders say refined copper exports have largely dried up as international prices dropped.

John Reade, metal analyst with investment bank UBS expected the trend in Chinese copper imports to continue as production constraints and robust demand growth necessitate higher refined imports.