Customs data shows that Jan-Aug China copper plate/strip export was 72.5kt, +26.7kr (+58.44%) YoY. Accumulative import was 69.5kt, -17kt (-19.67%) YoY. Net import volume shrank significantly with export volume exceeding import in May-Aug. Reasons for this phenomenon was that: First, China reliance for imported copper plate/strip decreased due to domestic technology improvement. Second, pandemic of COVID-19 disrupted producers overseas, which increased import from China to supplement. Third, export tax return policy stimulated producers. All these factors show that there is large space for domestic copper plate/strip products to develop.
Data Source: Customs
In terms of the specification of copper plate/strip export, refined copper plate/strip export accounts for 59% of total volume and copper/zinc alloy plate/strip only represents 17.73%. In terms of import, 20% of the import specification is copper-nickel alloy type, which means that China's occupation of high-end copper plate/strip products still need to increase.
Mysteel data shows that Aug China copper plate/strip production was 225.5kt, -3.3% MoM and -3.01% YoY. Utilization rate was 76.13% for large producers, 73.63% for middle-scale producers and 72.16% for small ones. Average utilization rate was 73.97% in Aug, -3.3% MoM and -3% YoY. Production fell because high temperature caused power supply tightness and epidemic influence on transportation.
Data Source: Mysteel
Mysteel investigated orderbooks of 12 main copper plate/strip producers with capacity of 970ktpa, which accounts for 30% of total China capacity. Aug orderbooks for these producers was 55kt, -14.2kt (-20.74%) MoM. Reasons for huge decline of Aug order were that power supply tightness caused production cut and end-users demand such as transformers electric industry and real estate industry weakened.
Data Source: Mysteel
T2 copper plate/strip price in Aug increased by 4.2% with average price of Yuan 67,600/t. H62 brass products price rose by 5% to Yuan 55,050/t in average. Both supply and demand was weak in this summer.
Data Source: Mysteel
Mysteel expects the market to improve in Sept. Temperature decline will ensure normal output. Demand peak season also will come. Consumption in new energy vehicle, grid-related construction and real estate will gradually remedy in Sept-Oct.
For queries and more information/data/reports access, please contact Paula Xu at xuzhongping@mysteel.com
