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Chinese copper imports fall on weak economy, real estate problems

Chinese copper imports fall on weak economy, real estate problems

Chinese copper imports fell 12.5% ​​in April from a year earlier, customs data showed on Tuesday, held back by weak demand and rising domestic output of the metal.

Imports of raw copper and derivative products amounted to 407,294 tons in April, according to data from the General Customs Administration.

The metal, which includes anode, refined, alloy, and semi-finished copper, is widely used in the construction, transportation, and energy sectors.

Demand for copper in the world’s second largest economy eased in April, due to subdued global demand for Chinese products and persistent weakness in the country’s real estate market.

In addition to an unexpected contraction in manufacturing activity in April, the double-digit slump in profits of Chinese industrial companies in the first quarter also pointed to an uneven economic recovery.

Declining orders and profits have forced many copper product makers to cut back on activity in recent months.

The stagnation of the economic recovery, together with the increase in national production, caused the fall in imports, according to Anna Xuprincipal analyst of Argus Media based in Shanghai.

In the first four months, raw copper imports fell 12.6% year-on-year to 1.7mt.

Analysts note that copper is being used less as collateral to raise financing in the market, which is further dampening demand.

After the Maike crisis, it is increasingly difficult for companies to finance themselves with copperXu said.

maike, once China’s largest copper importer, used the metal as collateral to finance real estate investments. The company filed for pre-bankruptcy in February after running out of liquidity last year.

Weaker-than-expected demand in China, including less use of copper as collateral in finance, will lead to a 250,000-tonne drop in refined copper imports in 2023, down 6.8% from last year, it said. Ye Jianhuadirector of Shanghai Metals Market.

Imports of copper ore and concentrate last month hit 2.1m tonnes, the data also showed, up 11.7% from a year ago, driven by record higher domestic production of refined metal.

Source: Reuters

Source: Gestion

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