China Slowing? nopeCopper Futures Rise in New York on Surging Chinese Imports
By Millie Munshi
May 15 (Bloomberg) -- Copper rose in New York after imports into China, the world's biggest consumer of the metal, surged 61 percent in the year's first four months.
China imported 1.08 million metric tons of copper and copper products from January through April, according to preliminary data issued today by the Beijing-based customs office. Imports in April jumped 68 percent to 304,672 tons from a year earlier. Copper futures have climbed 23 percent this year on speculation that China's economic growth will boost demand.
``Chinese imports have been leading the copper price,'' said Patrick Chidley, an analyst at Barnard Jacobs Mellet LLC in Stamford, Connecticut. ``The real question is whether this demand will continue and where it's going to go from here.''
Copper futures for July delivery rose 2.7 cents, or 0.8 percent, to $3.5235 a pound at 8:38 a.m. on the Comex division of the New York Mercantile Exchange. The price dropped 4.1 percent last week amid speculation that China may have an adequate supply of the metal, used in pipes and wires.
April imports were down from a record 307,740 tons in March, an indication that China's demand may be starting to wane, Sahil Kapoor, an analyst at Kotak Commodity Service Ltd. in Mumbai, wrote in a report today.
On the London Metal Exchange, copper for delivery in three months gained $65, or 0.8 percent, to $7,716 a ton. The metal reached a record $8,800 a ton last May.
A futures contract is an obligation to buy or sell a commodity at a fixed price for delivery by a specific date.
To contact the reporter on the story: Millie Munshi in New York at mmunshi@bloomberg.net .
Last Updated: May 15, 2007 09:12 EDT