Copper: Weak China imports contrast with bullish positioning - ING
ING strategists Ewa Manthey and Warren Patterson highlight that China’s latest trade data show continued weakness in copper imports, with unwrought volumes down 11.5% year-on-year and concentrate flows also softer.
ING strategists Ewa Manthey and Warren Patterson noted that China's latest trade data revealed a decline in copper imports. Unwrought copper imports decreased by 11.5% year-on-year to 424.6kt in July, while year-to-date volumes dropped by 6.2%. Copper concentrates also saw weaker imports, indicating the impact of tighter mine supply. Conversely, iron ore imports increased by 3.3% year-on-year to 108.1mt.
Export-wise, unwrought aluminium and aluminium products shipments rose by 18.6% year-on-year to 640kt, as producers took advantage of supply disruptions and trade tensions stemming from the Middle East conflict. Steel exports increased by 2.9% year-on-year to 10.1mt.
Speculative sentiment in copper remained positive, with money managers raising net long positions in COMEX copper to 77,796 lots, the highest since February 2021. Tight physical markets and low inventories supported copper prices during this period.
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