Tepid demand pulls China copper imports to more than 2-year low

China's copper imports in August dropped 41% year-on-year to their lowest since June 2019, customs data showed on Tuesday, as high prices and sluggish economic growth kept a lid on demand.

Arrivals of unwrought copper and products into China, the world's top copper consumer, were 394,017 tonnes in August, the General Administration of Customs said. That was down 7% from a month earlier and the fifth straight monthly decline.

"Chinese customers are not willing to buy copper at these prices. We saw buying below $9,000 a tonne, but anything above seems pretty expensive," said commodities broker Anna Stablum of Marex Spectron.

London copper prices had more than doubled in a year to hit a historic high $10,747.50 a tonne in May. Prices have since been range-bound at $9,000-$10,000 a tonne, weighed on by weak Chinese demand and fear of stimulus tightening.

The August data showed Chinese copper imports declining in every month since October last year - except for March - after strong imports in the middle of 2020, when the world's second-biggest economy rebounded strongly from the COVID-19 pandemic.

Factory activity grew at a slower pace in August versus July, although the construction sector, a key copper user, accelerated at its fastest pace since March.

Imports of copper concentrate, or partially processed copper ore, were 1.89 million tonnes in August, customs said. That was the highest level since May, leaping 19% year-on-year and up 0.2% from 1.887 million tonnes in July.

Exports of unwrought aluminium and products were 490,286 tonnes in August, customs said, hitting their highest since March 2020 with a 24% year-on-year jump and up 4.5% from July.