Archive for May 11th, 2009
China’s Refined Copper Imports to ‘Rise 34%’
China’s refined copper imports will rise by 34% to 1.95 million tonnes this year, said Ma Xiaoxin,
This pace will slow as importers turn again to copper scrap, and arbitrage imports fall, Ma said. “The shortage of copper scrap will ease in the second quarter, as rising [LME and SHFE] prices attract more traders into the recycling business,” she said at the 2009 Copper Industry Supply Chain Summit held by China Nonferrous Metals Industry Association (CNIA) in Beijing on Friday.. “Once the scrap problem is solved, China’s enthusiasm for refined copper will fade,” she added. China imported 748,281 tonnes of refined copper in
“Arbitrage buying, replacement of copper scrap, China’s State Reserve Bureau (SRB) buying and infrastructure investment especially in cable and wire industry have been major reasons for rising copper imports this year,” Ma said. “But China’s physical demand has not yet picked up,” she warned.
Officials at the China Nonferrous Metals Industry Association (CNIA) agreed. “The length of time arbitrage window will last is another key factor for China’s refined copper imports this year,” said Shi Lin, analyst from CRU.
“Once the price gap between Shanghai and LME copper disappears, China’s imports will go down and the rebound of copper prices will come to and end,” Shi said. “LME copper is heading towards $5,000 per tonne, but I don’t think it will rally at that level and copper prices will fall back to $4,000 per tonne quite soon,” said Ma.
Commodity Prices – May 8, 2009
Gold N.Y. Spot $ 911.05
Silver N.Y. Spot $ 13.87
Lead LME Cash $ 0.6684
Copper LME Cash $ 2.1555
Zinc LME Cash $ 0.6990
Nickel LME Spot $ 6.01
Aluminum LME Spot $ 0.6872
Platinum N.Y. Spot $ 1153.00
Palladium N.Y Spot $ 243.50
Oil WTI Cushing $ 057.60
Natural Gas (Henry Hub)($/MMBtu) $03.96
USD-AUD $ 1.3161
AUD-USD $ 0.7598
CAD-USD $ 0.8537
USD-CAD $ 1.1714
EUR-USD $ 1.3508