Statistics
China's copper imports climb in July
(Agencies)
Updated: 2010-08-10 17:26
 |
Large Medium Small |
Copper imports by China, the world's largest consumer, climbed for the first time in four months as arbitrage traders sought profits by buying the metal in London and selling it in Shanghai.
Shipments of copper and products gained 4.5 percent in July from June to 342,901 metric tons, the customs office said Tuesday. Imports were 16 percent below the same month last year, according to Bloomberg calculations.
Buyers have reduced shipments since April as they drained domestic inventories. Stockpiles at warehouses monitored by the Shanghai Futures Exchange dropped to the lowest level in six months as of July 30, according to the bourse. Copper is used to make wires and pipes for construction and manufacturing.
| ||||
Arbitrage had been profitable from the end of May to early July, and shipping usually takes up to one-and-a-half months, Pang said.
Copper stockpiles monitored by the Shanghai exchange fell to 104,507 tons in the week ended July 30, the lowest since January, bourse data showed. Stocks rose 1.8 percent to 106,368 tons last week.
Copper for three-month delivery on the London Metal Exchange settled at $7,425 a ton?Monday before release of the trade data, and declined 1.2 percent to $7,338.25 a ton at 3:38 pm in Shanghai.
'Window Closed'
"The arbitrage window has closed since late July, so imports in August will probably be steady or fall a little," if it remains shut, said Lu Chenghong, an analyst at Giger Capital Management Ltd.
Copper supplies may not be able to catch up with demand next year for the first time in four years, as China sustains buying while ore grades decline, said Pan Pacific Copper Co, Japan's largest smelter.
Hidenori Kamoo, general manager of the marketing department of the company, forecast the market to be balanced this year because of China's higher-than-expected first-half demand and a 300,000-ton surplus next year.
China also imported 380,000 tons of scrap copper in July, compared with 350,000 tons in June, the Beijing-based customs said. Imports of aluminum and the metal's products fell 9.6 percent to 67,462 tons from 74,582 tons the previous months, the figures show.