China Cu Ingot Import Hits 3 million tonnes Level in 2010

Chinese copper ingot import is expected to be around 3 million tonnes for 2 years in a row. The import was around 2.7 million tonnes in January-November 2010. The annual import could reach 2.9 million tonnes in 2010. The volume is lower than record 3.1 million tonnes in 2009 but the volume is almost twice of near 1.5 million tonnes in 2007 and 2008.

Chinese apparent copper ingot consumption was 5.13 million tonnes in 2008 while the production was 3.78 million tonnes. The shortage was 1.35 million tonnes, which was imported. However, the demand increased to 7.14 million tonnes in 2009 under aggressive investment for infrastructure. The import jumped to 3 million tonnes level in 2009 partly due to speculative purchase by traders when the production was only 4.11 million tonnes.

The import is estimated to be another 3 million tonnes level in 2010. An industry watcher sees Chinese speculators try to build copper inventory with expectation for strong demand.

Chinese copper import was 344,558 tonnes including processed copper products in December, which was 7% lower than a year earlier. The annual import was 4.292 million tonnes, which was around 2,000 tonnes higher than 2009 level. The copper products import volume level is much higher than 2.78 million tonnes in 2007 and 2.64 million tonnes in 2008.