Commodity Online
MUMBAI: China has started to buy copper in a big way again. As part of the country’s strategy to make use of the recessionary trends in the global markets, China has hiked its copper buying during the past few months.

As a result, China is piling up huge stocks of copper as domestic prices are higher than the international prices of the metal.
 
According to recently released data, China’s copper import hit a record high of 329,300 tonnes in February, up 41.5 per cent from the 232,700 tonnes of January.

China’s new hunger for copper will affect the international market as China is the leading buyer of the metal.

Copper prices had crashed to record lows in the recent past and China’s new-found love for copper may lift the prices now.

Reports said the import volume in January and February totaled 562,100 tonnes, up 20.6 per cent from a year earlier.

Chinese government is purchasing copper for national reserve, and hedging business between Shanghai Futures Exchange (SHFE) and London Metals Exchange (LME).

China State Reserve Bureau has signed to purchase 300,000 tonnes of copper from foreign markets for national reserve, which will mostly arrive in China in the first half of this year.

In February, about 200,000 tonnes of copper was imported for national reserve.

Chinese government has stocked 600,000 tonnes of copper for national reserve by far.

Currently, Chinese domestic copper prices are higher than those on foreign markets, which has triggered rising import into the country.

LME copper stocks have dropped by 3,325 tonnes to 518,700 tonnes in the past week, while those in SHFE rose by 10,136 tonnes to 38,468 tonnes at last weekend.

Analysts forecast copper prices in China will fluctuate in the near future.

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