China's Copper ore imports are falling from record highs – Commerzbank

China's export growth slowed more sharply than most analysts had expected in May. Apparently, the 90-day moratorium on most tariffs has not been as effective as anticipated, Commerzbank's commodity analyst Carsten Fritsch notes.

China is trying to take advantage of the high international prices

"However, base metal prices have been largely unaffected by the data: Aluminum is now trading at over $2,500 per ton, and Copper at almost $9,800 per ton. Meanwhile, Copper-specific news has been mixed: Chinese Copper ore imports have fallen significantly from their record high of almost 3 million tons in April and, at just under 2.4 million tons, are roughly in line with the average monthly level for the first quarter."

"China's Copper smelters are likely to be well supplied with Copper ore, however, as imports in the first five months were still around 7% higher than in the previous year. In addition, although Copper smelters worldwide are struggling with low treatment and refining charges, China's smelters are in a relatively comfortable position. This is because the many new production facilities are modern, involving larger plants with lower costs, and in many cases they are state-owned."

"This helps to a certain extent, at least. Regardless of this, according to media reports, Chinese smelters are trying to take advantage of the currently high international prices for sales on the LME and COMEX. This is because the halving of the import premium at the important import port of Yangshan indicates that domestic demand has weakened as is usual for the season."