China 2023 copper imports fall as domestic output rises

China’s copper imports declined 6.3% in 2023, customs data showed on Friday, as domestic production increased and a firmer U.S. dollar raised import costs.

Imports of unwrought copper and copper products were 5.5 million metric tons last year, data from the General Administration of Customs showed. The data includes anode, refined, alloy and semi-finished copper.

The metal is used widely in the construction, transport and power sectors.

The exit from China’s strict COVID-19 measures in 2023 enabled local copper producers to ramp up output and also to bring new projects online.

The country produced 11.81 million tons of refined copper in the first 11 months of last year, up 13.3% from the same period in 2022, data from the National Bureau of Statistics showed.

That led to a surge in raw material consumption. China’s imports of copper ore and concentrate in 2023 hit a record high of 27.54 million tons, up 9.1% from 2022, customs data showed.

In addition to the rising domestic output, a firm U.S. dollar last year curbed demand for imports of the metal because it made the greenback-priced product more expensive to buy.

“Given the higher costs brought by a strong dollar, there was less importation of copper as collateral to raise finance in the market,” said He Tianyu, a copper analyst at commodity research house CRU.

In December, China’s copper imports were 459,338 tons, down 16.6% from November when imports rose to the highest level in almost two years.

Imports in December slid 10.6% year-on-year due to weaker demand from copper users.

In 2022, imports were strong in December as buyers replenished stocks ahead of an early Lunar New Year in January, He said.

The Lunar New Year takes place in February this year.

Analysts said China’s copper imports are expected to decline further this year as domestic smelters raise production at a time when demand growth is expected to slow.

Rapid growth in the renewable energy and air conditioning sectors contributed to 3.7% annual growth in copper demand in China last year, according to analysts at Yong’an Futures.

However, this year copper demand growth is forecast to slow to 2.8%, the analysts said.
Source: Reuters (Reporting by Siyi Liu and Mei Mei Chu; Editing by Jamie Freed)