Chinese copper imports rise 37.7 percent year on year in November

Imports of refined copper into China rose 9.9 percent in November compared with October and were 37.7 percent higher than the same month a year ago but are expected to fall in December.

BEIJING (Reuters) - 

China's refined copper imports rose 10 percent in November to their highest level since May 2007 supply tightened in the domestic scrap market and traders stocked up for long term supply deals, data showed on Monday.

China, the world's top consumer of base metals, imported 141,728 tonnes of refined copper in November, up 37.7 percent from a year earlier and 9.9 percent from October, Customs data showed on Monday. But imports in the first 11 months of the year fell 10 percent to 1.24 million tonnes.

"Refined copper imports increased in November because there was less supply of secondary copper sources due to the tumbling price of copper scrap," said Judy Zhu, an analyst at Standard Chartered Bank.

"Many scrap copper recyclers we know in Shandong Province have been shut down," Zhu added. "Small-sized smelters saw limited margins in the scrap copper business."

The country's apparent consumption of refined copper rose to 478,052 tonnes in November from 422,933 tonnes in October, according to a Reuters calculation, showing usage of the refined metal rose despite demand weakness due to the world economic crisis. [ID:nSP109118]

Some traders said they also imported more metal in November to make up quantities on their long-term contracts and continued to import ahead of the Christmas holiday, partly because of relatively low prices.

"I have not seen any indicators of an increasing demand. I wanted to secure my volume for the next year with my overseas suppliers and obviously the prices are not that high right now," said a dealer at a local trading house in Shanghai.

Zoe Wang, an analyst at China International Futures said she expected December's refined copper imports to be less than in November, citing sluggish domestic demand.

Traders and analysts said they were concerned the imported metal would not be consumed immediately in the domestic market and could leave heavy inventories that might put further pressure on prices.

London Metal Exchange copper stocks rose 125 tonnes to 324,300 tonnes on Friday -- their highest since early 2004. London stocks have risen by 30,000 tonnes in December, while copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 12 percent last week.

 ALUMINIUM EXPORTS REMAIN WEAK

Metals producers across China have been hit by the economic crisis, which has sapped demand for China's main exports and trimmed economic growth.

Many aluminium smelters have been forced to close down some production, while trader talk of an imminent cut in the 15 percent export tax, which would give relief to domestic firms but further depress international prices, has not been borne out.

Exports of primary aluminium in China, the world's largest producer of the metal, plummeted 86 percent on the year to 854 tonnes in November. Exports were 6,011 tonnes in October.

"Obviously, the poor aluminium exports were due to the export tariffs on the metal and its products," said Standard Chartered's Zhu.(Editing by Sharon Lindores)

© Thomson Reuters 2008 All rights reserved

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