China Nov copper imports rise on brighter demand outlook



By Siyi Liu and Dominique Patton

BEIJING, Dec 7 (Reuters) - China's copper imports climbed in November on expectations of better demand next year as the world's top metals consumer speeds up efforts to support its embattled property sector and begins to ease tough COVID-19 restrictions.

Imports of unwrought copper and copper products totalled 539,901.70 tonnes in November, data from the General Administration of Customs showed.

The purchases, which included anode, refined, alloy and semi-finished copper products, represented an increase of 5.8% from imports of 510,402.3 tonnes in the same month last year.

A series of policies to support China's property sector, which accounts for a quarter of the world's second-biggest economy, including offering cheap loans to support developers' bonds, have brightened the demand outlook for the metal, which is mainly used in power and construction sectors.

China has also begun easing some anti-virus curbs in recent days, following unprecedented street protests, but analysts warn the economy faces a long and bumpy recovery.

Strengthened sentiment was reflected in rising copper prices.

Benchmark copper prices on the London Metals Exchange CMCU3 LME copper jumped 10.6% in November, the biggest monthly gain since April 2021. It registered an average of $8,239 a tonne last month.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 averaged at 64,790 yuan ($9,280.64) a tonne in November, up 4.1% from the prior month.

The increased inflow of cargoes came despite the closing of the arbitrage window between Shanghai and London.

“We see a jump in import through Shanghai over the second half of November, though closed price arbitrage made many of the import go to bonded warehouses instead of flowing to domestic market, said Lynn Zhao, a Shanghai-based metal analyst at Macquarie Bank.

"So bonded copper stocks also climbed over the past few weeks,” she added.

China brought in 5.36 million tonnes of copper in the first 11 months this year, up 8.5% from the same period a year ago. ($1 = 6.9812 Chinese yuan renminbi)
Reporting by Siyi Liu and Dominique Patton; Editing by Christian Schmollinger, Shri Navaratnam and Kim Coghill

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.