(Bloomberg) -- China’s refined copper exports surged to a record last month as weak demand in the world’s biggest metals buyer prompted smelters to turn to overseas markets.
Shipments more than doubled to 157,751 tons in June from May, well above the previous all-time high of 102,000 tons in 2012, according to customs data released on Sunday. The figures follow data last week that showed a jump in unwrought copper and copper products exports.
Asia’s largest economy grew at the slowest pace in five quarters in the three months through June, and the sluggish growth is flowing through to global copper prices, which have dropped by around 14% since mid-May. The People’s Bank of China cut a key short-term policy rate rate for the first time in almost a year on Monday, in a bid to revive activity.
Copper inventories are also swelling due to the lack of Chinese demand. Stockpiles at London Metal Exchange global warehouses have more than doubled since the middle of May, to the highest since September 2021.
“Chinese smelters have been largely sticking to their production plans and opted for exports,” as domestic demand is “very weak”, said Fan Rui, an analyst at Guoyuan Futures Co. Exports may stay elevated before winding down from September due to a lack of scrap feedstock supply, she said.
In other trade data released over the weekend, Chinese gold imports more than halved in June from the previous month as elevated prices deterred buyers. Aluminum purchases from Russia fell for a third month, and were at the lowest since January 2023.
On the Wire
The People’s Bank of China cut a key short-term policy rate for the first time in almost a year, stepping up support for the economy after growth disappointed and steering a shift toward a new policy benchmark.
President Xi Jinping unveiled sweeping plans to bolster the finances of China’s indebted local governments, as the ruling Communist Party announced its long-term blueprint for the world’s second-largest economy.
China’s ruling Communist Party pledged to accelerate a new housing model that emphasizes renting and ramps up affordable homes, following a record property slump.
This Week’s Diary
(All times Beijing unless noted.)
Monday, July 22
- China sets monthly loan prime rates, 09:15
- China’s loan prime rate (LPR)
Tuesday, July 23
- Nothing major scheduled
Wednesday, July 24
- CCTD’s weekly online briefing on Chinese coal, 15:00
Thursday, July 25
- Nothing major scheduled
Friday, July 26
- China Gold Congress and Expo, Shanghai, day 1
- China weekly iron ore port stockpiles
- Shanghai exchange weekly commodities inventory, ~15:30
Saturday, July 27
- China Gold Congress & Expo in Shanghai, day 2
- China industrial profits for June, 09:30
Sunday, July 28
- China gold Congress & Expo in Shanghai, day 3
(Updates with analyst comment in 5th paragraph.)
©2024 Bloomberg L.P.
