Chinese copper imports rose 24.3% in November from the previous month and reached their highest level since March, at 510,402 tonnes, customs data showed on Tuesday, as demand rose on the relief of power shortages that industrial production had declined.
However, inflows of raw copper and products in the world’s largest consumer of the metal fell 9.1% year-on-year, despite rising for the third consecutive month in November, the General Administration of Customs said.
Activity in China’s copper-intensive construction and manufacturing industries recovered in November as widespread energy rationing eased and rising material prices slowed.
Refined copper stocks at the Shanghai customs warehouses fell 17% in November to just under 170,000 tonnes, a record low.
However, customs last month told companies, including copper importers, that they would temporarily stop issuing value added tax (VAT) invoices as they intended to defer some tax revenue until 2022, which could discourage shopping.
Arrivals of copper concentrate, or partially processed ore, hit a record 2.19 million tonnes in November, up 21.9% month-on-month.
“Decreasing power shortages and favorable treatment rates encouraged more concentrate purchases,” ANZ analysts wrote in a note.
Copper miners in talks with smelters about the 2022 contracts are closely watching concentrate imports from China, with an imminent closure of the Las Bambas mine in Peru that will affect supply.
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