Importers book fewer shipments

Hong Kong

Some Chinese importers of refined copper have reduced bookings of term shipments for 2016, expecting lukewarm domestic demand and weak prices to continue, industry sources in China said.

Term shipments of refined copper are likely to fall 20-30 percent in 2016, said one executive at a large trading firm in Shanghai, putting average monthly term imports next year at about 200,000 tonnes, down from 250,000 tonnes a month in 2015.

The drop in term volumes would likely cut refined copper stocks in China's local market and bonded warehouses, and any unexpected demand surge could fuel higher premiums and prices in domestic <0#SCF:> and global markets, sources said.

Plans for the reduction of term shipments come despite suppliers cutting their premiums on top of the cash London Metal Exchange copper prices to overcome weak import demand.