China's Copper Imports Down 35.8% in First 11 Months
By David Harman
19 Dec 2006 at 08:16 AM EST
Go here for the tables -- resourceinvestor.com
SHANGHAI (Interfax-China) -- China imported 585,190 tonnes refined copper and copper alloy in the first 11 months, down 35.8% from last year, according to statistics released by the General Administration of Customs last Friday.
Refined copper and copper alloy exports surged 132.5% to 243,291 tonnes in the first 11 months was in part due to exports by the State Reserves Bureau to settle short positions on the London Metal Exchange (LME), Li Yusheng, analyst with Antaike Information in Beijing, said.
China, the world's largest copper consumer, used about 3.6 million tonnes of copper last year, a year-on-year increase of 9%. Its copper import accounted for around 45% of its demand.
According to England-based World Bureau, the decline in China's consumption brought about a global surplus of 306,000 tonnes in the first 10 months of the year.
Total world copper usage gained about 1.6%. Production rose 6% from a year ago to 14.5 million tonnes, while mine output dropped to 12.2 million tonnes.
Copper for delivery in February fell 770 yuan, or 1.2 percent, to settle at 62,880 yuan ($8,037) a tonne, the lowest level since Nov. 22, on the Shanghai Futures Exchange. The contract has dropped 25 percent since May 15 when it touched record high of 84,100 yuan.
Commentary
Again, as with metals overall, oversupply is becoming a real problem. Global stockpiles are increasing and a downturn in the U.S. housing sector is impacting demand.
As with aluminium and steel, value added finished product export is seen as the only solution.
Source: the General Administration of Customs
© Interfax-China 2006
This article comes from Interfax China Commodities Daily, a daily digest produced by Interfax News Agency in Mainland China. To receive 5 free copies of this, please e-mail alison.crawford@interfax.co.uk. |
