The chinese imports Copper fell 16.4% in June from a year earlier, customs data showed Thursday, held back by strong domestic production and weak demand in the world’s top consumer of copper. metal.
Imports of raw copper and derivative products amounted to 449,649 metric tons in June, 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.
But worsening ex-factory price deflation and a contraction in manufacturing activity last month weighed on demand. Consumers are wary of big spending, reflected in falling passenger car sales in June.
Weak economic conditions have raised market expectations that the government will announce further stimulus measures, sending the benchmark three-month copper contract on the London Metal Exchange rising to a two-month high at the end of June. It was the first monthly rise since March.
Relatively high global copper prices, partly attributable to the yuan’s rapid depreciation against the dollar, made it unprofitable for Chinese traders to import, according to Zhang Weixin, a metals analyst at China Futures.
Zhang said copper consumption is expected to remain tepid in the near term and weigh on imports.
June imports represented a marginal increase of 1.3% compared to the 444,010 tons of May.
Market participants said there were more copper arrivals from the Democratic Republic of Congo since late June, as Chinese group CMOC resumed exports from its TFM mine after resolving a dispute with the state miner.
Chinese copper imports fell 12% to 2.59 million metric tons in the first six months of 2023, compared with a year earlier, customs data showed.
Traders attributed the drop to higher domestic supply, as smelters ramped up production amid high treatment and refining costs.
As a result, Chinese imports of copper ore and concentrate rose 3.2% to 2.13 million metric tons in June from a year earlier, according to the data.
Fountain. Reuters
Source: Gestion
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