SHANGHAI Chinas copper imports increased 26.4 percent in October from a year earlier, reflecting a resurgent Chinese economy and renewed demand for copper financing.
Imports of unwrought copper and fabricated copper products totaled 406,708 tonnes last month, down 11.2 percent from September due partly to the long holiday at the beginning of October, according to preliminary customs data.
"Financing demand is robust and has rallied recently due to tighter credit at the end of the year," one domestic trader said. "I expect import numbers will increase next month. The (Shanghai Futures Exchange/London Metal Exchange) arbitrage is not favorable for importing, but vigorous financing demand will support imports."
Spot copper premiums in Shanghai were between $185 and $200 per tonne in October, indicating tight supply supported by financing demand.
A version of this article was first published by AMM sister publication Metal Bulletin.