BEIJING: China’s unwrought copper imports declined in June to a 14-month low, customs data showed on Friday, as high global prices and weak domestic demand suppressed buying appetite.
Imports of unwrought copper and products were 436,000 metric tons last month, down 3% from the 449,649 tons a year earlier and the lowest since April 2023, data from the General Administration of Customs showed.
The data includes anode, refined, alloy and semi-finished copper products. Demand for the metal used for power, construction and transportation sectors was weak as China’s manufacturing sector contracted for the second consecutive month in June.
The country’s official data also showed persistent weakness in its property sector, a major consumer for the industrial metal, as housing investment and completion continued to contract in May.
“Why import given the weak demand and high inventories in China?” said Zhang Weixin, a metals analyst at China Futures. Slow consumption pushed up stocks on the Shanghai Futures Exchange (SHFE) to a four-year peak.
The Yangshan copper premium, a closely watched indicator of China’s spot import appetite, stayed negative in June, according to local data provider Shanghai Metal Market.
Further curbing demand was a surge in global prices due to mined copper shortages and an increase in demand driven by AI and new energy sectors as well as funds buying.
Copper slips as rising stocks highlight poor demand prospects
Benchmark three-month copper on the London Metal Exchange hit a record high above $11,100 a ton on May 20.
The contract was down 12% since then but still 14% higher compared with the beginning of this year.
June’s imports marked a drop of 15% from the prior month, when imports came at a higher-than-expected 514,000 tons.
For the first half of the year, copper imports were up 6.8% to 2.76 million tons, the data showed.
January-April saw more booking of copper with the belief of brighter demand this year.
However, starting from May, buying has already slowed, reflected in declines in imports for this month and next, China Futures’ Zhang said.
Imports of copper concentrate were 2.31 million tons for June, up 8.7% from a year earlier, customs data showed.
Imports totalled 13.9 million tons in the first six months of 2024, up 3.7% from a year earlier.
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