China’s unwrought copper imports fell in July compared to the previous year, reflecting subdued demand and high inventory levels, according to customs data released on Wednesday. The country imported 438,000 metric tons of unwrought copper and products in July, down 2.9% from 451,159 tons in July 2023, as reported by the General Administration of Customs.
This decline is attributed to persistently weak demand in China, the world’s largest copper consumer, particularly in the power and construction sectors. The ongoing property crisis has contributed to a slowdown in manufacturing activity, which reached a five-month low in July, affecting retail sales and real estate services.
State-backed research firm Antaike predicts that refined copper consumption growth in China will slow to approximately 2.5% this year, down from 5.3% in 2023. The combination of lackluster demand and strong domestic production has led to elevated copper inventories, with deliverable stocks in Shanghai Futures Exchange warehouses remaining around 300,000 tons since April, marking a four-year high.
Despite the July decline, copper imports for the first seven months of the year increased by 5.4%, totaling 3.2 million tons, largely due to optimistic buying earlier in the year. Copper prices have dropped about 20% since hitting an all-time high in late May, prompting traders to see new opportunities for imports.
The Yangshan copper premium, an indicator of China’s spot import appetite, fell into negative territory in May and June but rebounded last month, reaching a four-month high of $48 per ton this week. Additionally, imports of copper concentrate in July were 2.17 million tons, the lowest since last year but up 9.6% from July 2023.