Chinese demand for copper or shrouded in shadows

February copper imports strong demand , imports of unwrought copper and copper up to double-digit growth year on year , the first two months of import growth is more than 40%. But the industry has warned that due to the ongoing concerns about China’s economic slowdown , coupled with China’s super- day fast devaluation of the RMB bond defaults and the stimulation of a substantial increase in copper imports in the future the situation may change , the price still downside risks . quartz grinding equipment in pakistan

Reuters quoted the Barclays report said : The current risk is : Chinese commodity imports surge situation will soon reversed, the feast will become famine. Compared with the previous month , February copper imports fell from record highs. Industry analysts said the strong commodity imports in the past two months is largely caused by short-term factors stimulating , such as trade finance and restocking needs. February China’s imports of unwrought copper and copper 380,000 tons , an increase of 27% , a decline of 29%. Cumulative January- February data, total imports of unwrought copper and copper 916,000 tons , an increase of 41.2% . January- February concentrate aspects of total imports rose by 25% to 1.8 million tons .

Recent domestic copper stocks remain high. With China ‘s economic slowdown , domestic industrial demand has not warmed up, the first two months of rising import demand has led to rising copper stocks , according to industry statistics inaccurate , bonded copper stocks have high prices and 700,000 tons . Weak demand, lower prices , inventory remains high, the copper market was the industry’s long-term bearish outlook . Investor Futures , said domestic copper demand uncertainty and copper overcapacity problems have a negative impact on the price of copper , and reflected on the future price of copper . As of March 10 , with LME copper price ratio has fallen below 7 , the ratio fell Shanghai and London , which may affect future copper imports . Mike futures analyst Wu Jianguo told Reuters :cement manufacturing process flow chart

Copper imports fell partly due to ring the Spring Festival , Shanghai and London , but the ratio of hard to find , but good . Shanghai and London shrink ratio , meaning that imports of copper will likely result in a loss or even unprofitable , will stimulate reduce imports in the future. In addition , LME spot premium last week, $ 23 / ton. Shanghai copper spot today premium 140 yuan / ton to flat water . Shanghai Futures , said the interim , the current round of lower domestic prices strengthened copper pattern of foreign powers in the weak and lead to further expansion of imports of loss , suppress domestic import enthusiasm.

China’s first corporate bond default risk is considered to be the industry’s recent decline in copper prices tipping point. “Wall Street Journal” reported citing traders view that ultra-day solar disturbing breach one of the reasons is that many Chinese companies to carry out copper as collateral loans, if these companies can not repay the debt, it will be back into the mortgage market copper . The event of default, the lender can sell the copper to cover lending losses. London broker Sucden Financial Company Rob said:. “If this company was in breach of contract, breach of contract would be the possibility of other companies in China have a lot of copper is used for financing, if the copper back into the market, it could lead to more copper low. ” iron ore beneficiation plant

” Wall Street Journal ” article said CEO Scott Schuberg Rivkin Securities , said: . ” Copper imports jumped closely associated with Chinese copper demand continues to sell the financing will enable investors to hold excessive stock losses and copper bulls ” based on concerns about China’s economic slowdown , many Chinese companies use to import large quantities of copper from bank financing. If copper prices , copper traders such financing will be forced to sell stock to cover the risk of loss of copper to release , which will further make copper pressure. Year to date , domestic prices have fallen by a total of about 10 percent, Bloomberg News tracked 34 kinds of commodities , the largest decline in copper prices .

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