China is a big user of copper. According to Xi 'an Michael International Metal Company, the copper stock in the duty-free warehouse has increased from zero at the beginning of the year to 350,000 tons at present, and may be re-exported abroad.
"We can hardly find buyers of refined copper," said Luo, general manager of Xi 'an Copper Department. According to the executive, the company is one of the top three importers in China. "China must export some copper between now and next year," Luo said in an interview.
"We can hardly find buyers of refined copper," said Luo, general manager of the copper department of Anmike Company. Company executives said that the company has become one of the three largest copper importers in China. Luo Kangrui said in an interview: "From now on and in the next few years, China will export some copper abroad."
The price of copper used to make pipes and wires has more than doubled this year, as China's 4 trillion yuan (US$ 586 billion) stimulus spending, the increase of national reserves and the lack of waste materials have boosted China's imports to record levels. At least since July, this has helped push China's housing prices lower than London's.
Copper used to make copper tubes and copper wires has stimulated consumption to reach 4 trillion yuan (US$ 586 billion) this year, more than twice that of last year. The increase of national reserves and the lack of waste stimulated China's exports and set a new record. Since July last year, this has also helped push the price in China lower than that in London.
Luo said that Xi 'an had to transfer some bonded copper to the warehouse of London Metal Exchange in South Korea because the company could not find a buyer in China and the supply in South Korea exceeded the demand. He said that the effect of the stimulus plan is fading and the local scrap supply is improving.
Mr. Luo said that AmMichael had to export some bonded copper to the Korean warehouse of London Metal Exchange in another way, because the company could not find a buyer in China, the domestic supply exceeded demand, the impact of the stimulus plan was decreasing, and the domestic waste supply was improving.
Grace Qu, an analyst at CRU International Limited, said in Beijing yesterday, "We do see the trend that more copper is diverted, although our estimate of bonded copper is not so big." She said that transferring metals from bonded stocks to stocks published by LME will be bad for London prices.
Grace Qu, an analyst at CRU International, said in Beijing yesterday that we did see this trend, and more and more copper was re-exported, but our forecast for bonded copper was not that big, and the transfer of metals from bonded stocks to London Metal Exchange would have an adverse impact on the price in London.
Luo's estimate of the bonded area's inventory contrasts with Macquarie Group Ltd.' s 60,000 tons in July. This is also more than three times the inventory of the Shanghai Futures Exchange warehouse. As of the week of 1 1 February 2, the inventory of the Shanghai Futures Exchange warehouse was 104275 tons. Bonded area preserves imported goods before paying customs duties.
Teacher Luo's prediction of copper inventory in the bonded area can be compared with the 60,000 tons given by McGree in July. This figure is three times that of Shanghai futures trading warehouse. On 1 1.2, the Shanghai futures trading warehouse has 104275 tons. Bonded areas can obtain imported goods before paying customs duties.
London three-month copper traded at $6,548 per ton yesterday, compared with $3,070 per ton at the end of last year. Shanghai futures prices have also more than doubled this year, reaching a high of 565,438 yuan ($7,554) per ton yesterday.
Yesterday, the three-month copper price in London Exchange Center was $6,548/ton, compared with $3,070/ton at the end of last year. Yesterday, the transaction price of Shanghai Futures Center hit a new high this year, 5 1.580 yuan/ton (US$ 7,554), more than twice that of last year.
However, according to Bloomberg's calculation, it has been unprofitable to buy metals from overseas and sell them in China market since at least July. After taking into account the value-added tax of China 17%, the price in Shanghai was lower than that in London on Monday 1300 yuan.
In addition, according to Peng Bo's calculation, the mode of buying metals from abroad and selling them at home has not been so profitable since at least July. Together with the domestic 17% VAT, the Shanghai futures price exceeds 1.300 yuan/ton, which is lower than the price in London on Monday.
In addition to the stocks in the bonded area, China may also hold150,000 tons in the Shanghai area, including in the warehouses monitored by the exchange; 235,000 tons of State Reserve Bureau, held by the government; Luo, 36, said on Monday that he had cooperated with manufacturers and private investors for 200,000 tons.
According to the data of Beijing Customs, the export volume of refined copper in China in September was 10705 tons, an increase of 70% over a month ago, which is the highest level this year. In the first nine months of this year, the import of refined copper was 2.58 million tons, an increase of 165% over the same period of last year.
In addition to the stocks in the bonded area, China has 65,438+050,000 tons of copper stocks in Shanghai, including the trading monitoring warehouse. The State Reserve Bureau has 235,000 tons and belongs to the government. 200,000 tons belong to manufacturers and private investors, as president Luo said on Monday. According to the data of Beijing Customs, the export volume of refined copper in China in September was 10705 tons, 70% more than a month ago, which is the highest since this year. In the first nine months of this year, the import of refined copper was 2.58 million tons, an increase of 165% compared with last year.
According to Luo, Xi 'an may import about 400,000 tons of refined copper this year, ranking the top three in terms of import volume.
Mr. Luo said that An Company imported about 400,000 tons of refined copper this year and became one of the three largest importers in China.