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China's imports of unwrought copper surged by 15.4% in September from the previous month, reaching 479,000 metric tons, driven by improved seasonal demand and a favorable consumption outlook. Analysts cited low prices in early September, restocking for the Golden Week holiday, and reduced domestic inventories as key factors boosting imports. Higher global copper prices opened arbitrage opportunities for traders, further supporting import activity. Additionally, China's stimulus measures to boost economic growth, along with U.S. interest rate cuts, improved the demand outlook for the metal. For the first nine months of 2024, copper imports totaled 4.09 million tons, up 2.6% year-on-year.

Key Highlights

* China’s unwrought copper imports rose 15.4% in September.

* Seasonal demand and Golden Week restocking drove the increase.

* Higher global copper prices opened arbitrage opportunities.

* Government stimulus measures boosted economic growth outlook.

* Copper concentrate imports grew 8.9% from a year earlier.

China's imports of unwrought copper saw a significant rise in September, climbing 15.4% from August to reach 479,000 metric tons, according to customs data. This surge in imports came on the back of improved seasonal demand and a brighter consumption outlook for the industrial metal. Copper prices remained relatively low in the first half of the month, encouraging buying activities. Additionally, restocking for the Golden Week holiday, which sees increased consumption of copper-containing products such as white goods and automobiles, contributed to the growth.

Supporting the price performance were reduced inventories in China. Stocks on the Shanghai Futures Exchange dropped to a seven-month low by the end of September, reaching 140,408 tons. Higher global copper prices also created an arbitrage window for traders to profit from importing the metal, further stimulating imports.

Other factors influencing the market included China's recent economic stimulus measures aimed at boosting growth. These measures included cutting mortgage rates and easing restrictions on home purchases, which complemented the U.S. Federal Reserve's interest rate cut to improve copper demand.

In addition to unwrought copper, China’s imports of copper concentrate also increased. September's copper concentrate imports reached 2.44 million tons, an 8.9% rise year-on-year, while cumulative imports for the first nine months of the year grew by 3.7% to 21.06 million tons.

Finally

China's rising copper imports signal improved demand amid economic stimulus and seasonal factors, potentially supporting higher prices as inventories remain tight.

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