China scrap copper imports curbed by customs rules
Post Date: 20 May 2013 Viewed: 430
Bloomberg reported that strict quality checks of scrap copper shipments to China and a slowdown in US recycling are boosting demand for ore at refiners in the biggest user of base metals.
Mr Ma Xiaoxin deputy head of the copper department at state owned China Minmetals Nonferrous Metals Company said that Chinese ports began tighter enforcement of existing regulations in February to weed out low grade scrap.
According to the China Nonferrous Metals Industry Association, miners including BHP Billiton Limited and Codelco may benefit with ore imports jumping 26% in the Q1 while inbound scrap copper shipments fell 4.6 percent in the four months through April. About 32% of the country’s refined copper was derived from scrap last year.
Mr Duan Shaofu deputy head of the heavy metals department at the metals association said that “The growth of China’s refined production using ore has been fairly quick. China’s refined output this year may rise 8 percent to 6.3 million metric tonnes.
Barclays Plc estimated that global demand will outpace supply by 269,000 tonnes in the 6 months through September, cutting this year’s glut to 92,000 tonnes. That’s down from a 142,000 tonne surplus in 2012.