Key Takeaways
- China imported 281,307 metric tons of refined copper in June, the highest since September last year.
- The Yangshan copper premium hit a 14-month high at $100 per ton on July 17th.
- Imports surged 42% in the second quarter compared to the first and were up 3% from the same period last year.
China’s imports of refined copper reached a nine-month high in June, according to data released by the General Administration of Customs. The country imported 281,307 metric tons of the metal, marking the highest single-month import since September last year.
The surge in demand is attributed to strong domestic consumption and declining domestic supply. May saw a second consecutive month of reduced output, with production hitting its lowest level since November due to smelter maintenance caused by copper concentrate shortages.
The Yangshan copper premium, which measures China’s appetite for importing the metal, reached $100 per ton on July 17th, marking a 133% increase from the beginning of the year. This indicates heightened demand and reduced domestic supply, driving up import costs significantly.
Imports in the second quarter witnessed a substantial rise of 42% compared to the first quarter and were 3% higher than the same period last year. The Democratic Republic of Congo, Russia, and Chile emerged as top suppliers, with monthly gains of 18%, 21%, and 57% respectively.
China’s imports are expected to continue growing in the second half of this year, driven by robust demand and potential lower domestic output due to ongoing smelter maintenance. Reuters reported that China’s refined copper imports are set to rise, supported by strong demand and possibly reduced domestic production.
Despite the increase in imports, the overall trend suggests a shift towards greater reliance on foreign sources for copper supply. This development could have implications for both local industries and international trade relations.
