China’s copper exports hit record

China’s refined copper exports surged to a record 157,751 tons in June, more than doubling from May’s figures and surpassing the previous high of 102,000 tons in 2012. This surge is attributed to weak domestic demand, prompting smelters to seek overseas markets.

The latest data follows a notable increase in exports of unwrought copper and copper products. China’s economy grew at its slowest pace in five quarters from April to June, which has impacted global copper prices, dropping around 14 per cent since mid-May. In response, the People’s Bank of China cut a key short-term policy rate for the first time in nearly a year to stimulate economic activity.

Copper inventories are rising due to decreased Chinese demand, with stockpiles at London Metal Exchange (LME) warehouses more than doubling since mid-May, reaching the highest levels since September 2021.

Other trade data revealed that Chinese gold imports halved in June compared to May as high prices deterred buyers, and aluminum imports from Russia fell for the third consecutive month, hitting the lowest level since January 2023.

The People’s Bank of China cut a key short-term policy rate to support the economy following disappointing growth, marking a shift towards a new policy benchmark. President Xi Jinping announced plans to improve the finances of China’s indebted local governments.

Attribution: Bloomberg