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China’s Copper Imports Drop as Overseas Lockdowns Tighten Supply

China’s Copper Imports Drop as Overseas Lockdowns Tighten Supply

(Bloomberg) -- China, the world’s largest copper consumer, imported less metal and concentrate last month as pandemic-driven lockdowns in overseas mining regions disrupted supplies.

  • Copper concentrate imports were 1.69 million tons in May, down from 2.03 million tons in April and 1.84 million tons a year ago, according to customs data on Sunday
  • Unwrought copper and products purchases were 436,031 tons, falling from 461,458 tons in April and compared with 361,000 tons a year ago
Key Insights
  • Lockdowns in producers, especially in South America, have hampered mine operations and shipments, triggering warnings from smelters such as Tongling Nonferrous Metals Group Holdings Co., China’s second largest
  • For copper concentrate, the impact of the lockdowns will be felt more in June and that will reduce China’s refined copper output in June and July, Chen Weixuan, analyst with Shanghai Metals Market, said ahead of the data release
    • Domestic smelters are feeling the pain of tightened ore supply, with current treatment charges around their breakeven point: Chen
  • On a year-to-date basis, imports of concentrate and unwrought copper and products still rose 2.2% and 12% respectively, signaling resilient demand from the country that was first to succumb and then first to recover from the pandemic
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  • Exports of steel and aluminum products declined on falling overseas demand due to the pandemic
    • Steel product exports fell to 4.40 million tons in May, the lowest since 2013 and down from 6.32 million tons in April and 5.74 million tons a year ago
    • Unwrought aluminum and products shipments declined to 382,935 tons, compared with 441,180 tons in April and 536,000 tons a year ago
  • Iron ore imports fell to 87.03 million tons from 95.71 million tons in April, with year-to-date shipment rising 5.1% to 445.3 million tons
    • Buoyant Australian cargoes were outweighed by virus-depressed Brazilian shipments

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With assistance from Bloomberg