BEIJING: China’s copper imports hit a ten-month high in October, customs data showed on Tuesday, as declining domestic stocks and firm demand underpinned buying activity.
Imports of unwrought copper and copper products, used widely in the construction, transport and power sectors, totalled 500,168 metric tons, the highest since last December, data from the General Administration of Customs showed.
The data includes anode, refined, alloy and semi-finished copper.
That marked a jump of 23.7% from 404,414 tons last October, when industrial demand was hurt by the country’s stringent COVID-19 curbs.
China’s domestic copper inventories have declined in recent months, with stocks on the Shanghai Futures Exchange at a 13-month low as of Oct. 27.
That was down 85.6% from a peak in March and down 36.1% from a year earlier.
September and October traditionally see good demand for the metal as industrial activity ramps up after a summer lull, while higher consumer spending during the Golden Week holiday in early October also boosts demand.
In addition, China unleashed more economic stimulus measures - including property- and infrastructure-related loans - to shore up its economy, improving the outlook for copper.
Falling global prices also encouraged copper users to import more, He Tianyu, an analyst at consultancy CRU, said.
Benchmark copper prices on the London Metal Exchange registered a third consecutive monthly decline in October, partly weighed down by rising stocks on the exchange amid soft global demand.
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Enhanced appetite for imported copper was reflected in a rally in the Yangshan copper premium to $92 per ton on Oct. 31, more than tripling from the start of August and the highest since last November.
October imports also marked a 4.1% rise compared with the previous month, fuelled by shrinking stocks, but year-to-date copper imports were down 6.7% from a year earlier, as strong domestic production had curbed foreign buying.
China’s monthly output of refined copper has held at record levels above 1 million tons since March, boosting demand for copper ore and concentrate.
China’s imports of copper ore and concentrate rose 11.3% year-on-year to 2.31 million tons in October, customs data showed.
Total imports in the first 10 months were up 9.2% from a year earlier, at 22.64 million tons.