(Bloomberg) — China’s copper smelters are preparing to boost exports, a sign its manufacturing and construction sectors aren’t yet making a decisive recovery from the ravages of the past year.
The possibility of a powerful rebound in Asia’s biggest economy has fueled a number of bullish calls on the industrial metal since China exited strict Covid curbs late last year. But an imminent burst of exports from the world’s biggest copper market suggests appetite for the bellwether metal among domestic buyers is still shaky.
At least four major smelters are planning to deliver 23,000 to 45,000 tons of refined copper in total to London Metal Exchange depots in Asia in coming weeks, according to people with knowledge of the sales, who asked not to be identified because the plans are private.
Global copper prices have retreated since reaching a seven-month high in January, partly due to uncertainty over the strength of China’s recovery. The growth target of about 5% for this year — unveiled by the country’s leadership over the weekend — was viewed as a modest goal that won’t deliver a major boost to commodities.
China is a big net importer of copper, but refined metal occasionally flows out in larger volumes when there’s imbalances with the global market. Inventories have been stacking up recently in China, while supply is much tighter elsewhere, and prices are relatively higher. Exchange stockpiles in the rest of the world fell to their lowest since 2005 last month.
“Chinese demand has been lower than expected but it will recover,” said Fan Rui, an analyst at Guoyuan Futures Co. The jump in copper exports could continue into April before Chinese demand eventually picks up, she said.
There are tentative signs that point to stronger metals demand in the country: for example, the nation’s manufacturing index for February notched its highest reading in more than a decade.
The Chinese copper smelters have no clear idea about future exports with the domestic outlook still uncertain for now, the people familiar with their plans said.
Some 13,000 tons of copper that appeared in warehouses in Busan, South Korea this month are from Chinese smelters, one of the people said. The fresh exports are likely to go to LME sheds in South Korea or other Asian locations, and the volumes are in addition to any contracted supplies, the people said.
Copper prices fell 0.7% to $8,850 on the LME as of 10:36 a.m. in Shanghai. They’re down around 1% this month but are still up almost 6% for the year.
The Week’s Diary
(All times Beijing unless noted.)
Thursday, March 9
China inflation data for February, 09:30
China to release February aggregate financing & money supply by March 15
Wilson Center webinar on geopolitics of minerals critical to the clean energy transition
Mysteel’s Indonesia Nickel Supply Chain Summit in Jakarta
On The Wire
China’s consumer inflation slowed sharply in February as costs of food and consumer goods eased following the end of the Lunar New Year holiday, while factory prices continued to decline.
The US should scrap decade-old import tariffs on solar power equipment after years of protectionism has failed to boost its domestic manufacturing base, according to the chairman of a top Chinese clean energy firm.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
