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No slump in China copper imports
Commodity Online
NEW DELHI: Even though the world was worried over a slump in China’s import of copper following a slowdown in economic growth, China’s refined copper imports have topped 100,000 tonnes in May.

For China, last year was exceptional for copper imports, and May’s levels will not be very different from a year earlier.

Imports could be around 120,000 tonnes, compared with 121,383 tonnes a year earlier.

Copper prices in London have rallied 18 per cent this year, as demand from China and supply disruptions helped to shrink global stockpiles by more than a third.

China’s manufacturing growth slowed last month, raising concern that use of the metal for wires and pipes may decline.

China imported 127,977 tonnes of refined copper in April, up from 126,421 tonnes in March.

Copper Futures in Shanghai have risen only 3.7 per cent this year, lagging behind benchmark London Metal Exchange prices.

Traders in China normally use the ratio of domestic prices to the LME to gauge whether imports are profitable, after taking into account costs including taxes, duties and freight charges.

The most-active contract on the Shanghai Futures Exchange traded at an average 62,935 yuan a tonne in May.

LME copper for delivery in three months, which reached a record $8,880 a tonne on April 17, averaged $8,247 a tonne.

Global stockpiles of copper tracked by the LME dropped 38 per cent this year to 122,900 tonnes, while Shanghai inventories climbed 85 percent to stand at 44,554 tons last week.

Average prices of copper for immediate delivery in Changjiang, Shanghai’s biggest cash market, have fallen 4.6 per cent from a year ago.

Chinese copper imports may be on a gradual decline as domestic production increases. China’s copper output was 329,400 tonnes in April, up 23 per cent from a year ago.

Imports of refined copper may fall but imports of copper concentrate will continue to increase as fabricators and processors have to keep production going.

China’s imports of copper concentrate, the main raw material, were 1.87 million tonnes in the first four months of this year, up 23 per cent from the same period a year ago.