(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Andy Home
LONDON, Aug 2 (Reuters) – China’s copper import surge has
peaked.
The country sucked in a record 4.67 million tonnes of
refined copper last year, making it the single most important
physical driver of the pandemic recovery rally.
This year, the import pulse has slowed, with volumes sliding
by 10% over the first half and the monthly total dipping below
300,000 tonnes in both May and June. (https://tmsnrt.rs/3C81YWg)
High prices and Beijing’s attempts to fade last year’s
stimulus have taken some of the heat out of the Chinese market.
Equally significant is the wave of scrap washing up on
China’s shores as imports rebound after policy-makers reversed a
planned ban on what had been designated “waste”.
Now classified as a “resource”, scrap is flooding into the
country, reducing the requirement for refined metal.
It could be a “hugely negative factor for world copper
prices”, analysts at Roskill said. (“China’s scrap rebalancing
act threatens to de-rail the price recovery,”, July 28, 2021.)
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