BEIJING, Jun 27, 2008 (SinoCast via COMTEX) -- JGXCF | Quote | Chart | News | PowerRating -- In the first four months of 2008, China's copper import largely rose, but 40% of the imported goods were used for financing, although the domestic banks tightened lending, said an insider of Jiangxi Copper Co., Ltd. (SHSE: 600362; SEHK: 0358).
After entering into the import agreement with foreign partners, the nation's copper buyer can obtain the letter of credit by a bank. At the very beginning, it just needs to pay a deposit, and then pay the rest within 90 or 180 days when the Chinese company immediately sells imported copper and makes investments, once it completes the delivery.
Of course, the copper importer can reap more profits, due to the renminbi appreciation and currency interest spread, added people familiar with the matter.
China Customs recently announced that 91,087 tons of copper were imported from January to May, surging 40.38% from a year earlier. Last month, with a 38.69% jump, the nation totally bought 11,708 tons of copper from overseas markets
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