(Bloomberg) -- China's imports of unwrought copper and products weakened in May as concerns over the global economic outlook weighed on sentiment and lower domestic prices made imports less attractive.
- Imports of unwrought copper and products slumped to 361,000 tons tons in May, down 23% from a year earlier and 11% lower than April, according to China's General Administration of Customs. Copper concentrate imports rose to 1.84 million tons, the highest since February and up 17% from a year earlier.
Key Insights
- The International Monetary Fund this month trimmed its forecasts for economic growth in China, and said the trade war with the U.S. is tilting the balance of risks to the downside. The Asian nation is the world's biggest copper buyer and the metal is often considered a barometer of economic activity.
- China's import premium over London Metal Exchange prices for refined copper fell to a 2-year low during May, indicative of both lackluster end-user demand and the rise of the country's domestic smelting industry.
- The market is also expecting some disruption in imports of copper scrap, an alternative source of the metal, as China steps up curbs.
Market Reaction
- Shanghai copper futures rose 0.7%, rebounding from lowest close since 2017. Prices in London advanced 0.5%.
Get More
- China's overall exports unexpectedly rebounded in May and imports dropped, as the trade standoff with the U.S. intensifies and both countries show no signs of deescalating tensions
- Customs data also showed steel exports retreated while aluminum exports rose in May
- Iron ore imports rose 3.7% from a month earlier, but are still down 5.2% year-to-date. See here for details
To contact Bloomberg News staff for this story: Martin Ritchie in Shanghai at mritchie14@bloomberg.net
To contact the editors responsible for this story: Phoebe Sedgman at psedgman2@bloomberg.net, Jake Lloyd-Smith
©2019 Bloomberg L.P.
With assistance from Bloomberg
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
