China Dec refined copper imports, implied demand up

* China Dec refined copper imports up 25.5 pct to 244,013 t

* Apparent consumption up 4.5 pct

* Jan imports seen rising on arbitrage, investment

http://graphics.thomsonreuters.com/0110/CN_TRADE.html

By Polly Yam

HONG KONG, Jan 21 (Reuters) - Strong imports of refined copper drove up China's apparent consumption 4.5 percent on the month in December, although domestic production was off from the previous month's record.

China's imports of refined copper, the most popular type in global and domestic markets, rose 25.5 percent on the month to 244,013 tonnes in December, fuelled by strong domestic prices and the arrival of term shipments before the end of the year, data released on Thursday by the General Administration of Customs showed.

The world's top copper consumer imported a record 3.19 million tonnes of refined copper in 2009, up 118.7 percent from 2008, and the key driver of a 140 percent price rise  on the London Metal Exchange last year.

Helped by record imports and a 9.6 percent output rise, 2009 apparent consumption surged 38.9 percent from a year earlier to 7.29 million tonnes. Consumption was at 654,040 tonnes in December.

To see graphics for Dec copper imports, output and apparent consumption, click on

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"Imports would rise in January from December and would be even higher in February since the arbitrage has been profitable in the past month," said Jing Chuan, chief researcher at Great Wall Futures.

He said China's recent tightening moves were unlikely to cut refined copper imports unless Beijing turned around the monetary policy.

"Credits were already released in the beginning of the year and now there are a lot of funds available," he said.

He added inflation was expected to be accelerating, which would prompt investors to import copper for stockpiling, even though supply had increased on the back of strong domestic production and record 2009 imports.

Traders said Chinese importers had bought copper from LME warehouses in South Korea following the resumption of arbitrage, buying at the LME prices and selling to the Chinese market in mid-December.

Some Chinese buyers had also been asked to take 2009 shipments in December. Traders said other buyers had delayed the October-November shipments last year to January-February this year due to then low Chinese prices.

"With spot orders and delayed 2009 term shipments, imports would rise in January and February," a Western producer source said of shipments to China.

ALUMINIUM

Imports of primary aluminium to the world's top consumer and producer of the metal dropped 26.9 percent on the month to 42,106 tonnes in December following the closure of arbitrage.

Apparent consumption dropped 6.2 percent on the month to 1.36 million tonnes, although domestic production rose 1 percent and hit a record for the third straight month.

In 2009, imports rocketed 1,130 percent on the year to 1.5 million tonnes on the back of record imports in the first half when the arbitrage wide opened. That boosted the year's apparent consumption 12.4 percent to 14.34 million tonnes.

But traders said imports were likely to fall further in January since importers had already taken contracted shipments booked in the first half in December and the arbitrage remained closed.

To see the graphic for Dec aluminium imports, click:

http://graphics.thomsonreuters.com/0110/CN_ALIMP0110.gif

(Editing by Clarence Fernandez)