China Copper Imports Reach Record; Aluminum Triples

Copper imports by China, the world¡¯s largest consumer, rose to a record for a third month in April as buyers took advantage of low prices to replenish stockpiles and demand was spurred by a $585 billion stimulus program.

Inbound shipments advanced 7 percent from the previous month to 399,833 metric tons, the Beijing-based customs office said today, citing preliminary data. Aluminum purchases also jumped to a record.

China¡¯s urban fixed-asset investment climbed 30.5 percent in the first four months from a year earlier as the government pumped money into building railways, oil pipelines and low-cost housing. Imports of copper and copper products soared as scrap supply plunged and the State Reserve Bureau probably boosted inventories.

¡°The record amount is within the market¡¯s expectation and has been mostly priced-in,¡± Grace Qu, an analyst at commodities researcher CBI China Co. said from Shanghai today. ¡°We expect shipments to decline month-on-month from May but still be sustained at a high level until June.¡±

China¡¯s scrap imports rose for a third straight month in April to 400,000 tons, customs data shows.

¡°This is the top end of our forecast for monthly scrap purchases,¡± Qu said.

The State Reserve Bureau contracted to take 300,000 tons to 400,000 tons of refined copper into its stockpiles from overseas this year, according to Macquarie Group Ltd. analysts.

¡®Not Optimistic¡¯

¡°Our understanding is the SRB buying has been mostly completed and commercial stockpiling by manufacturers has also come to an end, so China¡¯s imports are bound to fall,¡± Edward Fang, an analyst at China International Futures (Shanghai) Co. said today.

¡°We are not optimistic about consumer demand in the next few months as we seeing a trend of declines in their order books,¡± Fang added.

The State Reserve Bureau also bought 590,000 tons of aluminum from domestic smelters to support prices, traders have said.

China¡¯s imports of aluminum and products almost tripled to 439,902 tons, a record amount according to CRU International Ltd. analyst Wan Ling.

The volume is ¡°higher than our expectation,¡± Wan said from Beijing today. ¡°The imports may still weigh on the market in May.¡±

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