19.9 C
Belgrade
Supported byspot_img
spot_img

Chinese copper producers gear up for record exports amid price rally

Member of Europium Groupspot_img
Supported byspot_img

In a bid to dampen soaring copper prices and alleviate pressure on their order books, Chinese copper producers are gearing up to export up to 100,000 metric tons of metal, the highest volume in 12 years. The move comes as copper prices surged towards record highs due to a speculative frenzy, with prices on the London Metal Exchange (LME) nearing peaks not seen since 2022.

Industry sources revealed that the planned exports aim to capitalize on the rally, which has seen copper prices reach levels close to the all-time high of $10,845 per metric ton. The anticipated 100,000 tons of copper shipments from China, slated to occur over the next few weeks, would mark a significant uptick compared to recent export volumes.

While logistical challenges may arise from shipping such large quantities of copper out of China in a short timeframe, industry insiders suggest that much of the metal will likely pass through bonded warehouses in Shanghai. These warehouses have seen a notable increase in inventories, indicating a buildup of surplus metal.

Supported by

The decision to export copper reflects China’s efforts to influence prices and address the slowdown in demand from end-users. However, it represents only a fraction of China’s annual consumption of approximately 13 million tons, highlighting the country’s status as a significant importer.

Despite record-high prices on the LME, the physical market in China shows signs of excess supply, with rising inventories and subdued demand. The global copper market is also expected to face surpluses in the coming years, according to forecasts from the International Copper Study Group (ICSG).

The widening arbitrage between LME and Shanghai Futures Exchange (ShFE) prices is driving the export decision, making it financially attractive for Chinese producers. Logistics experts report increased inquiries about the costs of transporting copper to LME warehouses, indicating growing interest in export opportunities.

With Chinese copper producers poised to potentially export significant volumes each month, the move could provide some relief to the global copper market, which has been grappling with supply-demand imbalances and price volatility.

Supported byElevatePR Digital

Related News

Overcoming the copper supply challenge: Implications for U.S. renewable energy goals

A recent University of Michigan study sheds light on a concerning gap in copper production essential for meeting renewable energy targets in the United...

Unlocking renewable energy potential: The role of renewable hydrogen in storage and decarbonization

Renewable electricity can be effectively stored by converting it into renewable hydrogen or ammonia through the process of electrolysis. These fuels can be utilized...

Empowering renewable energy: Harnessing the potential of renewable hydrogen for storage and decarbonization

Batteries play a crucial role in providing short-term flexibility to the energy system, offering advantages such as geographical and sizing flexibility. Unlike some other...

Energy storage: Enabling clean alternatives and job creation in coal-dependent regions

Energy storage is particularly relevant to carbon-intensive and coal regions, as it provides a cleaner alternative to hard-to-abate industries and traditional fossil-fuel-powered thermal plants...
Supported by
Supported by
Supported by
error: Content is protected !!