Chinese smelters ramp up copper exports

According to Bloomberg, Chinese smelters are ramping up their copper exports. In the coming weeks, about 30,000 tons of the metal are set to be delivered to London Metal Exchange’s (LME) warehouses in Asia. 

China’s smelting industry has fallen under pressure from a price surge on the LME. This week, the price of copper contracts for immediate delivery rose to a premium of $379 per ton to contracts for delivery in three months. The figure is one of the highest on record, Bloomberg says.

The news agency notes that this situation points to a shortage on the LME. A spike in copper shipments to the US ahead of possible imposition of tariffs by President Donald Trump has left the rest of the world short of the metal.

This year, LME inventories have declined by about 80%. China’s copper inventories also dropped, yet they have stabilized in the past two months amid weakening demand. Nevertheless, a surge in exports could lead to renewed tightness in the Chinese copper market, Bloomberg notes.