China October Copper Imports Decline to One-Year Low

Refined copper imports by China, the world’s largest consumer, tumbled to the lowest level in a year, as high international prices and ample domestic supplies cut the demand for overseas shipments.

Refined copper imports declined 30 percent to 169,897 metric tons from 241,711 tons in September, according to Bloomberg News calculations based on data from General Administration of Customs. Inbound shipments dropped for the second consecutive month to the lowest since October 2009.

“Domestic production recovered strongly after summer ended, replacing demand for imports,” Peng Qiang, an analyst at Cofco Futures Co., said from Beijing. Ample local stocks weighed on prices, making importing unprofitable, he said.

Arbitrage trading by buying the metal in London and selling in Shanghai has been mostly unprofitable since late July, according to data compiled by Bloomberg News. Arbitrage traders try to profit by buying metal in London and selling it in Shanghai, exploiting a gap in prices.

Stockpiles at Shanghai Futures Exchange-monitored warehouses expanded for a third week to the highest level in five months last week, adding 11,313 tons to 126,736 tons, according to the bourse.

Copper for three-month delivery on the London Metal Exchange hit a record of $8,966 a ton on Nov. 11. It traded 0.7 percent higher at $8,465 by 3:20 p.m. in Shanghai.

--Helen Sun. Editors: Richard Dobson, Jarrett Banks.