Refined copper imports by China surged to a record in December, narrowing the second annual decline, as consumers built inventories ahead of a seasonal increase in demand.

According to a statement from the General Administration of Customs, copper imports jumped by 78% from a year ago to 406,937 tonnes, rising for a seventh month.

According to Mr Wang Zhouyi an analyst at Shanghai CIFCO Futures Co, that was the highest on record.

Mr Wang said that “There are wide expectations that the market will warm up after the Chinese New Year holiday, as spring is usually when demand picks up. Still, as prices continue to climb, we’ll have to wait to see how downstream demand reacts.”

Surging imports, coupled with a rebound in domestic production, have swelled inventories in Shanghai for a seventh week and widened the local cash discount.

Three month copper on the London Metal Exchange advanced to USD 8,428.5 a tonne, the highest in four months, after retreating 21% in 2011.


(Sourced from Bloomberg)