SHANGHAI (Interfax-China) -- China imported 116,749 tonnes of refined copper in May, surging 148.3% from the same period last year. Chile was the largest provider of refined copper to China in May, supplying 66,852 tonnes, according to statistics released by the General Administration of Customs.
In the first five months of this year, China's refined copper imports ballooned 142.6% year-on-year to 786,441 tonnes.
Refined copper exports plunged 77.2% to 26,135 tonnes in the five-month period.
Shanghai Futures Exchange copper futures settled lower on Monday amid market concerns that the Chinese government will lift interest rates, according to analysts.
Zhou Xiaochuan, governor of China's Central Bank, said that while inflation remains under control, the central bank will not rule out the possibility of interest rate hikes if China's CPI growth rate continues to rise.
China imported 1.30 million tonnes of unwrought copper and copper products during January and May, up 58.5% compared to the same period last year.
China's primary aluminium imports in the first five months of this year fell to 59,617 tonnes, plummeting 50.8% from the same period last year, according to statistics released by the General Administration of Customs today.
China's bauxite imports from January to May soared 211.9% to 8.20 million tonnes. However, alumina imports fell to 2.32 million tonnes in the five-month period, down 16.7% year-on-year.
China's primary aluminium exports in the first five months amounted to 88,465 tonnes, plunging 74.3% when compared to the same period last year. Aluminium alloy exports also fell to 149,961 tonnes, down 8.2% compared to January to May export figures last year.
Aluminium futures ended mixed in a narrow range on the SHFE amid a relatively tight market as producers strive to limit the impact of government curbs on exports, effective on July 1.
"The current physical market is quite tight, as aluminium producers rush to export aluminium products before the policy comes into force in July," COFCO analyst Huang Chengkang said.
SHFE aluminium stockpiles last week declined by 1,920 tonnes to 22,432 tonnes.
China will cancel the current 13% value-added tax (VAT) rebate on welded carbon-steel pipe exports, as well as the rebate on aluminium rod and bar exports, which is between 8% and 11%, on July 1, according to a Ministry of Finance statement issued last week.
China's steel products exports surged 116.7% to 27.44 million tonnes in the first five months of the year, according the General Customs Administration.
In the first five months of the year, China's iron ore imports increased 21.4% year-on-year to 161.15 million tonnes.
Iron ore imports rose 13.0% to 27.62 million tonnes in May. Australia was the largest supplier of iron ore to China in May, with 10.70 million tonnes.
Commentary
First glance at headlines 'Copper imports up 148.3% in May' will stir the bulls and get the bears running for cover. However, further analysis shows that the trend, at least short term, is for falling imports.
While the year-on-year figures do give the impression of continued strong imports; in fact imports of refined copper fell by 8.2% in April and 37.3% in May which puts a whole new perspective on the direction of the industry.
© InterFax-China 2007.
This article comes from Interfax China Commodities Daily, a daily digest produced by Interfax News Agency in Mainland China. To receive 10 free copies of this, please e-mail david.harman@interfax-news.com.
