By Bloomberg News
June 22 (Bloomberg) -- China, the world’s biggest copper consumer, increased imports to a record in May as buyers replenished stockpiles needed for the country’s 4 trillion yuan ($586 billion) stimulus program.
Inbound shipments of refined copper advanced 6 percent from the previous month to 337,230 metric tons and were more than triple the same month last year, final data from the Beijing- based customs office showed today. The imports were the highest ever, said Lai Qiwen, Guantong Futures Brokerage Co.
China’s urban fixed-asset investment surged 32.9 percent, more than estimated, in the first five months from a year earlier as the government pumped money into building railways, oil pipelines and low-cost housing. Copper, used in power grids and homes, has advanced 58 percent this year in London as China boosted purchases.
“May’s shipments were from orders early in the year and have been priced in,” Lai said from Beijing today. “Copper importing turned unprofitable about two months ago.”
China’s refined copper imports more than doubled to 1.4 million tons in the first five months compared with a year earlier. The country’s refined copper purchases may jump to a record 2 million tons this year as scrap metal supplies plunge and Chinese government spending sustains consumption, Simon Collins, general manager of Trafigura Trading Shanghai Co., said in February.
“We expect the import momentum will cool from June, yet traders will continue to ship in the metal for cash flows despite losses on their book,” Lai said.
Inbound shipments of primary aluminum, refined zinc and lead in May all retreated from record levels in March or April, customs data showed. Last month’s imports of nickel and alloys jumped 19 percent from a month earlier to 25,032 tons, the highest since as least 2004, according to Bloomberg data.
--Li Xiaowei. Editors: Richard Dobson, Jake Lloyd-Smith.
To contact the Bloomberg News staff on this story: Li Xiaowei in Shanghai at Xli12@bloomberg.net
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