china copper imports drop less than expected

China Copper Imports Drop Less Than Expected in June (Update1)

By Xiao Yu

July 16 (Bloomberg) -- China's copper imports, the biggest in the world, fell 6.1 percent in June, declining less than expected amid speculation the nation's stockpiling agency might have bought the metal.

Refined copper and alloy imports were 121,991 metric tons last month, the Beijing-based office said in a statement today, citing preliminary data. This compares with 129,949 tons in May and 69,715 tons in June 2006, according to Bloomberg data.

``There is speculation that the State Reserve Bureau bought the metal to replenish stockpiles,'' Li Ling, a trader with Star Futures Co., said by phone from Shanghai today. ``The figure is still higher than we had expected.''

China's copper imports have fallen month-on-month since March, as stockpiles in Shanghai Futures Exchange warehouses more than doubled and London prices rose, making shipments into the Asian nation unprofitable. Demand in China usually drops in the summer as factories close for holidays or maintenance.

Imports of the metal over the first half of the year more than doubled to 998,077 tons compared with a year ago, the customs data showed. Copper is used to make wires and pipes.

Calls to the Beijing-based State Reserve Bureau, the nation's stockpiling agency, were not answered.

To contact the reporter on this story: Xiao Yu in Beijing at [email protected]

Last Updated: July 15, 2007 22:22 EDT