High price of copper effect the import of copper ore and copper scrap in China
Hongkong reported on April 15th, the competitive international price of copper and cheap producing cost is obstacle for chinese refinery enterprise to import minerals, on the other hand, it facilitated the application of metal scraps.
The international copper price which is much more competitive than domestic price is now reducing import of copper scraps to china.Copper scrap importers are saleing their storage now, but they can not import more raw materials before June this year, because there is a stagnant period in the middle of the year.
A sales manager of one northern refinery enterprise said, as the largest global industrial metal consumer, China will have 10% increase rate on refined copper this year.
The sales manager said, the capacity of refined copper will reach 3,800,000 tons this year, but whether it can exceed this level will depend on the supply of copper scraps.
We are using more metal scraps as replacer for minerals. Other refinery will also use more metal scraps.
Chinese refinery enterprise have signed agreement on ore processing and refining fee with oversea mineral coporations, the agreement include the price for ore USD47.2/MT and processing fee 4.72 cents/ pound. This price in 21% lower than that of last year.
One refinery enterprise officer said, although the contract price is reduced, Chinese refinery will increase purchase order this year, because they have foreseed the short supply in global mineral market.
The international copper price have reached a rather high level recorded USD8820/MTon March 6th, So far,the price have increased 30% this year.
But chinese copper price increased only 14%, owing to storage inflation and governmental policy on credit squeeze, the purchasing ability of end-user is reduced.
A sales manager of one refinery in Gansu Province said, the price of import minerals is higher than the domestic price.
A manager of one metals scrap import company in Jiangsu province said, the demand of copper scrap is growing up, but after the zoom increase of import in the first season, there will be enough supply of metal scraps.
The manager said, we are dumping our storage. We are not importing due to high price level.
He showed that the company planed to increase purchase order from the end of May to June, because there will have a price rising during August and September due to Capacity increase.
One international trading company said, most importers have expressed that they will not increase purchase before June this year.
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