(MB) - Low demand stifles Chinese Cu trade
1/10/1 17:2 (New York)
January 10 (Metal Bulletin) - Copper premiums in Shanghai have
remained virtually unchanged as a result of the recent weakness
in the LME copper price and poor demand, Chinese traders noted.
"The majority of the material in-warehouse appears to have
dwindled but nobody is importing because the LME copper price
is much higher than the domestic copper prices," a trader from
Shanghai said. Shanghai in-warehouse premiums are currently
between $60 and $62 per tonne.
"There is basically no market for copper imports currently due
to flat demand and approaching holidays in China," another
Chinese trader said. "Many end-users do not need material now
and will only start to purchase after the Chinese New Year
season," he added.
According to industry sources, Singapore in-warehouse premiums
are steady and some traders have noted renewed purchasing
interest among buyers in the physical market recently. Copper
from Korean smelters is being offered at $40 per tonne over LME
and from Chilean producers at $48-50 per tonne above the LME
price.
Meanwhile, according to latest data, China produced 146,000
tonnes of copper in November and imported 56,000 tonnes,
respectively 23.5% and 19% up on the same month in 1999.
China's copper exports during the month reached 10,500 tonnes,
a decrease of 29% over the same year-earlier period.
In the eleven months ended November 2000, China's total copper
exports and imports reached 108,000 tonnes and 754,000 tonnes,
up 16.9% and 49.4% respectively against the same period in
1999. Chinese copper consumption in November alone was 175,000
tonnes, an increase of 25% over the same period in 1999, while
total consumption in the January-November period was around
1.77m tonnes, 20% up year-on-year.
The average ex-works price in November was 18,608 yuan ($2,248)
per tonne, down 540 yuan per tonne against the October average,
while the average spot price was around 18,480 yuan ($2,232)
per tonne. Domestic copper prices slipped in parallel with the
international market and industry analysts predict that there
is only a slim chance of recovery this year, since China's
copper supply still far outstrips demand. Rising imports are
proving to be another factor in keeping prices down, especially
as exports are still at a low level due to the international
market glut.
Metal Bulletin newsroom, London Tel +44 207 827 9977 Fax
+44 207 928 6892 New York Tel +1 212 213 6202 Fax +1 212
213 6273
I don't understand last two sentences. Can anyone explain?
-0- (BN ) Jan/10/2001 22:02 GMT |
