hong Kong August 10, 2012, 11:13 IST
hong Kong August 10, 2012, 11:13 IST
hong Kong 08 10, 2012, 11:20 IST
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China's copper imports rose 5.9 in July from the previous month and gained 19.5 percent from a year earlier, preliminary customs data showed on Friday, reversing a decline in June despite slowing economic activity in the world's top consumer of the metal.
The increase was unexpected after weak domestic demand had been forecast to cut term shipments.
Arrivals of anode, refined metal, alloy and semi-finished copper products totalled 366,548 tonnes in July, compared with 346,223 tonnes in June, when weak demand drove imports to a 10-month low. July inflows were still the second lowest this year.
"I would not link an increase in Chinese copper imports to domestic demand because I don't see demand improving from here - it's actually very soft," said Judy Zhu, analyst at Standard Chartered Shanghai. "A lot of imports are under term contracts so they have to import anyway and this could result in bonded stockpiles rising."
Official data on Thursday showed that factory output growth for July in the world's second-largest economy slowed to a three-year low, while retail sales and fixed-asset investment missed market forecasts, confirming the slowdown.
Easing credit in the domestic market may have helped imports in July and the rise would add to pressure on domestic copper prices, said Beijing Capital Futures analyst Xiao Jing.
A few international trading houses may be anticipating improved demand in China in the second half from expected economic stimulus measures and may have relocated refined copper stocks to the country, said a trader at an international trading firm.
July arrivals may have included 264,000 tonnes of refined copper, the most popular type in international and domestic markets, based on the proportion in June inflows, which totalled 250,097 tonnes.
China's copper demand has been sluggish for most of this year and dropped further in July as key users cut consumption.
Demand fell in July from June after producers of copper tube, used in air-conditioners, cut output in the summer after earlier increasing production.
An indicator of weak demand, bonded refined copper stocks in Shanghai rose 11 percent to about 620,000 tonnes in late July from about 550,000 tonnes in late June, traders estimated. (Editing by Chris Lewis)