Status and Prospect of Copper Products Trade in 2012-Part II

The downturn or slow recovery of the global economy had an adverse impact on the demand in the international market. In addition, the slow growth of China's economy, coupled with the structural adjustment of domestic copper products, ensures that most of the domestic products of different qualities and varieties can replace the imports. Therefore, both the imports and exports of copper products in 2012 showed a year-on-year decline, except the exports of copper wire and copper foil. Besides copper pipe and pipe fitting, copper powder became another product that achieved net export. On the whole, the export momentum remains strong than the import momentum. The exports in the second half of the year were larger than those in the first half of the year. The annual imports totaled 668,500 tons, a year-on-year decline of 14.48%. The annual exports totaled 493,100 tons, a slight decline of l. 45%.

It is expected that the global economy in 2013 will fluctuate at low level with modest recovery.Trade protectionism will show up now and then in the major exporting areas of copper materials.However, the products in copper processing enterprises in China (including domestic ones and foreign-funded ones)will maintain their export momentum. The exports of copper material products will rebound, to more than 520,000 tons in a year. The imports will remain weaker than the exports, keeping stable while declining slightly.

In the foreign trade of copper materials, the imports of processing materials of refined copper reached 342,900 tons, a year-on-year decline of l4.42%, accounting for 51.29% of the total imports. The exports reached l81,600 tons, a yearon-year decline of 6.92%, accounting for 36.83%of the total.

On the whole, the foreign trade of copper materials in 2012 showed little change when compared with the past few years. The imports were mainly characterized by processing trade,totaling 391,000 tons, a year-on-year decline of 9.13%. The bonded area transit trade reached 92,500 tons, processing with supplied material 84,400 tons, down by 33.96%, and general trade 83,300 tons.

The exports of copper materials through processing with imported material reached 289,300 tons, a year-on-year decline of 8.51%,accounting for 58.68% of the total exports. The exports through general trade reached l26,300 tons, up by 7.76%.

The enterprises that imported copper materials were mainly foreign-funded ones. Their imports reached 444,800 tons, a year-on-year decline of 8.04%, accounting for 66.54% of the total imports. Joint ventures followed with imports of 101,300tons. The exporting enterprises were mainly joint ventures. Their exports reached 200,500 tons, a year-on-year decline of 5.02%, accounting for 40.66% of the total exports. Foreign-funded enterprises and private enterprises imported 140,100 tons and 104,500 tons, respectively.

The following is a brief description of the foreign trade of the six kinds of copper material products.

Copper profiles (including bars)The foreign trade volume of copper profiles is small among all the copper material products. The bad market environment in 2012 had an adverse impact on the foreign trade of copper profiles which was already grim. The annual imports of copper profiles totaled 71,600 tons, a year-on-year decline of ll. 27%. The annual exports totaled 7,366 tons, a year-on-year decline of 7.90%.The ratio of the imports to the exports decreased by 0.4 to 9.7:1. This was the largest gap among all the copper material products.

China's copper profiles were exported mainly through processing on order in 2012, and the volume reached 3,720 tons, a great increase of 115.78% year on year, accounting for 50.50%of the total exports. Ranking second, the exports through processing with imported material reached 2,010 tons, down by 53.57%. The exports through general trade reached 1,320 tons, down by 23.79%. With regard to exports of different kinds of enterprises, the exports of joint ventures reached 2,621 tons, a year-onyear growth of 19.74%. The exports of private enterprises reached l958 tons, down by l8.31%.The exports of foreign-funded enterprises reached 1,627 tons, down by 26.97%

In 2012, the imports of copper profiles through processing with imported material remained the top, reaching 37,400 tons, a year-on-year decline of 11.37%. The imports through processing on order reached l7,500 tons, down by 17.06%. The imports through general trade reached l 1,400 tons, a slight decline of 0.87%.The enterprises that imported copper profiles were mainly foreign-funded ones, with imports of 53,900 tons, a year-on-year decline of 4.09%,accounting for 75.37% of the total imports. Private enterprises followed with imports of 6,481 tons. The imports of SOEs reached 5,816 tons,a year-on-year decline of 49.86%.It is expected that the imports of copper profiles will fall slightly in 2013, while the exports will rebound slightly.

Copper Sheets and Strips: In 2012, the foreign trade of copper sheets and strips continued to adjust, with the decline of the imports larger than that of the exports. The annual import reached 124,700 tons, a year-on-year decrease of 14.99%. The exports reached 27,300 tons,down by 7.11%. The ratio of the imports to the exports dropped from 5:1 to 4.6:1. It is expected that the exports of copper sheets and strips will reverse the downward trend and achieved modest growth, while the imports will show a certain level of decline.

In 2012, China's copper sheets and strips were exported mainly through processing with imported material, with the annual export volume of 17,500 tons, a year-on-year decline of 5.91%,accounting for 63.98% of the total exports. The exports through general trade reached 5,064 tons. The main pattern of China's copper sheets and strips imports was also processing with imported material, with the annual import volume of 81,800 tons, a year-on-year decline of 10.41%. The imports through processing on order reached 19,500 tons, down by 30.11%.The combined imports through these two patterns accounted for 81.24% of the total imports.

Among the enterprises that exported copper sheets and strips, the annual exports of joint ventures totaled 8,560 tons, a year-on-year growth of 30.63%. Foreign-funded enterprises,SOEs and private enterprises exported 7,127 tons (down 35.79%), 5,927 tons (up l5.49%)and 4,584 tons (down 6.92%), respectively.The annual imports of foreign-funded enterprises topped the list of the enterprises that imported copper sheets and strips, reaching 100,600 tons, a year-on-year decline of 10.82%.SOEs followed with imports of 9,518 tons,down by 38.99%.

China's imports of copper sheets and strips were mainly concentrated in Guangdong. The annual imports there reached 78,100 tons, a year-on-year decline of l4.74%, accounting for 62.69% of the country's total imports. Shanghai and Jiangsu came next.

IDifferent from the previous year, China's source of copper sheets and strips in 2012 mainly came from Hong Kong and Japan. The imports from Taiwan fell substantially. Hong Kong remained the top export destination, accounting for 40.22% of the total exports.

Copper Foil The exports of copper foil reached l89,100 tons, a slight increase of 0.92%. The imports fell by 8.74% to 275,800 tons. The ratio of the imports to the exports dropped from 1.6:1 to 1.5:1, and the gap is narrowing year by year.

In terms of exporting pattern, the exports through processing with imported material were the largest, reaching 136,300 tons, a yearon-year decline of 5.41%, accounting for 72.05%of the total exports. The exports through general trade followed with 26,000 tons, up by 6.83%. The exports through bonded area warehousing reached 21,400 tons, up by l8.23%.The main enterprises that exported copper foil were foreign-funded ones and joint ventures,with the annual exports of 100,900 tons (up 4.89%)and 65,400 tons (2.82%)respectively.SOEs followed with exports of 8,198 tons, a year-on-year decline of 21.17%.

Hong Kong remained the main export destination of China's copper foil, accounting for 48.86% of China's total exports. The imports from Taiwan were the largest, accounting for 44.63% of the China's total imports.

Among all the enterprises that imported copper foil, the annual imports of foreign-funded ones remained the largest, reaching l66,000 tons, a year-on-year decline of 3.38%, accounting for 60.21% of the total imports. Joint ventures, private enterprises and SOEs followed with imports of 61,100 tons (down 7.01%), 29,800 tons(down 9.42%)and 17,700 tons (down 39.79%)respectively.

China's copper foil was imported mainly through processing with imported material in 2012, with the annual imports reaching l41,700 tons, a year-on-year decline of 4.85%, accounting for 51.38% of the total imports. The imports through bonded area warehousing transit trade and general trade reached 67,800 tons(down 3.42%)and 39,200 tons (up 4.53%)respectively.

China's imports of copper foil mainly concentrated in Guangdong Province. The annual imports there reached 186,500 tons, a year-onyear decline of 10.59%, accounting for 67.40%of China's total imports. Jiangsu and Shanghai came next. China's exports of copper foil areas also mainly concentrated in Guangdong Province. The annual exports there reached 95,200 tons, a slight growth of 0.42% year on year,accounting for 50.33% of the total exports.Jiangsu followed with exports of 47,100 tons,up by 8.03%. Shaanxi and Shanghai exported l 2,300 tons and 12,000 tons respectively.

In addition, the imports of the three types of unbacked copper foil reached 146,800 tons in 2012, a year-on-year growth of 5.13%, accounting for 53.23% of the total imports. The exports reached 36,700 tons, a year-on-year increase of 9.47%, accounting for l9.41% of the total exports. The foreign trade volume of printed circuit CCL was the largest. Its imports and exports reached l20,300 tons (down 21.74%)and l52,100tons (down slightly by 0.96%)respectively.

As the world economy stabilizes and rebounds slowly, the home-produced copper foil is becoming more and more competitive. Given this,it is expected that the exports of copper foil will reach close to 200,000 tons, while the imports will continue to reduce slightly.

Copper pipe Anti-dumping in certain countries,coupled with the weak demand in the international market, continued to negatively affect the exports of copper pipes (including pipe fittings).In 2012, China's exports and imports of copper pipes and pipe fittings reached 247,500 tons(down 3.08%）and 22，700 tons (down 20.16%)respectively. The exports were nearly 11 times of the imports. It is expected that the exports of copper pipes and pipe fittings will rebound, while the imports will continue to fall slightly.

The annual exports of the eight types of copper pipes (hereafter referred to as pipes), excluding pipe fittings, reached 161,800 tons, a year-onyear decline of 5.93%, accounting for 65.39%of the total exports of pipes and fittings. The imports reached 19500 tons, a year-on-year decline of 22.31%, accounting for 85.99% of the total imports. The net exports reached l42,300 tons, a year-on-year decline of 3.13%.

China's exports of pipes were mainly through processing with imported material. The annual exports totaled 110,400 tons, a year-on-year decline of 13.88%, accounting for 68.25% of the total exports of pipes. The exports through general trade and processing on order came next, reaching 29,000 tons (up 29.46%)and 21,600 tons (up 3.35%)respectively. Among the exporting enterprises, the exports of joint ventures remained the largest, accounting for 61.88% of the total exports. The exports of pipes mainly concentrated in Zhejiang, Shanghai, Henan and Guangdong.

China exported its copper pipes to 160 countries, 4 more countries than the previous year.The exports to the U.S. and Taiwan topped the list, reaching 17,900 tons (up 2.29%)and 17,600 tons (up 2.33%)respectively, accounting for 21.94% of the total exports.

The annual imports of pipes in foreign-funded enterprises were the largest, reaching 9,444 tons, a year-on-year decline of l3.36%. Joint ventures came next with imports of 4,093 tons,down by 34.51%. SOEs imported 3,121 tons,down by 24.96%. The annual imports of pipes were mainly through processing, reaching 8,720 tons, a year-on-year decline of 26.72%.The imports through general trade reached 5,456 tons, down by 29.07%.

Copper wire: In 2012, the imports and exports reached 171,000 tons (down 22.37%)and 18,300 tons (up 11.72%), respectively. The ratio of the imports to the exports dropped by 4.1to 9.3:l, indicating a large gap. It is expected that in 2013, the massive introduction and operation of wire rod production lines will push up the exports greatly while the imports will continue to fall year by year.

In 2012, China's imports of copper wire were mainly through processing with imported material. The annual imports totaled 119,000 tons,a year-on-year decline of 11.19%, accounting for 69.60% of the total imports. The imports through processing on order came next, reaching 17,600 tons, down by 48.24%.The imports through general trade reached 14,800 tons,down by 14.94%. Among all the importing enterprises, foreign-funded enterprises imported 110,900 tons, a year-on-year decline of 13.43%.Joint ventures, private enterprises and SOEs imported 24,000 tons (up 12.15%), 20,200 tons(down 34.20%)and 15,500 tons (down 59.21%), respectively.

The imports of copper wire in Guangdong Province were the largest, reaching l03,900 tons, a year-on-year decline of 25.63%, accounting for 60.73% of the total imports. Jiangsu and Zhejiang followed with imports of 27,700 tons (down 13.17%)and 10,000 tons,respectively.

The main sources of China's copper wire imports were still Chinese Taibei and Korea. Their combined imports accounted for 57.31% of the total.

China's exports of copper wire were mainly through processing. The annual exports totaled 7,072 tons, a year-on-year decline of l7.04%.The exports through feeding processing and general trade reached 6,638 tons (greatly up 193.33%)and 3,374 tons (down 20.82%).

Copper powder The foreign trade volume of copper powder underwent adjustment in 2012.However, the decline of the exports was smaller than that of the imports. The annual exports and imports reached 3471 tons (down 8.22%)and 2720 tons (down 19.43%), respectively.The net exports totaled 751 tons, a year-on-year increase of 84.98%.

The annual exports through general trade reached 3,443 tons, a year-on-year decline of 5.95%, accounting for 99.13% of the total exports. The exports of foreign-funded enterprises were the largest, a year-on-year decline of 1.85%, accounting for 73.38% of the total exports.

The foreign trade of China's copper powder concentrated in Japan. The exports of copper to Japan powder accounted for 73.38% of the total exports. And the imports of copper from Japan accounted for 38.86% of the total imports.

The imports through general trade reached 1,334 tons, a year-on-year decline of l6.68%.The imports through processing with imported material reached 1,118 tons, up by l3.50%. The imports of foreign-funded enterprises reached l,719 tons, up by 7.10%, accounting for 36.20%of the total imports.

It is expected that the exports of copper powder in 2013 will be greater than in 2012. The imports will continue to fall, while the net imports will grow further.

Similar to the foreign trade of copper material products, the imports and exports of China's copper goods fell over the previous year. The imports and exports reached 34,371 tons (down 22.43%)and 51,526 tons (down 15.26%). The net exports totaled 17,155 tons, an increase of 665 tons (or 4.03%)over the same period last year. It is expected that the exports of copper goods will rebound in 2013 while the imports will continue to fall slightly.

The exports through general trade reached 36,185 tons, a year-on-year decline of l3.03%,accounting for 70.23% of the total exports. The exports through processing on order reached 10,475 tons, down by l8.01%.

Among all the enterprises that exported copper goods, the exports of private enterprises were the largest, accounting for 43.86% of the total exports. Among all the enterprises that imported copper goods, the imports of foreignfunded enterprises remained dominant, accounting for 88.15% of the total imports.

The main sources of China's copper goods imports in 2012 were Korea and Hong Kong (the imports grew tremendously over the previous year).Their combined imports accounted for 60.39% of the total imports. The top export destinations were Hong Kong and America.Their combined exports accounted for 34.56%of the total exports.

In 2012, the imports of copper goods through processing with imported material and processing on order topped the list, reaching 17,368 tons (down 30.68%)and l2860 tons(down 6.52%), respectively. Their combined exports accounted for 87.95% of the total exports.

The exports of copper goods mainly concentrated in Zhejiang (21,153 tons, a year-on-year decline of 4.48%)and Guangdong (18,651 tons, down 17.03%). The top importing provinces were Shangdong (12,912 tons, a year-onyear increase of 3.54%), Jiangsu (9,356 tons,down 30.90%)and Guangdong (6,820 tons,down 41.11%).

The characteristics of the foreign trade of copper goods were as follows: 1.The imports of the three main copper raw materials showed growth. In 2012, the supply in the international market grew, the processing fees of refined copper rose, favorable foreign trade policies were introduced, overseas copper raw material bases were established. Under the circumstances, the supply of concentrates and raw copper basically guaranteed the domestic copper smelting, the expansion of refining capacity and the normal production of enterprises. Although the imports of waste copper were constrained by tense market supply and the price inversion with refined copper, they still showed slight growth. 2. The imports and exports of refined copper showed different levels of growth. The imports of refined copper grew as a result of the inflation of financing copper in addition to domestic rigid demand. The exports grew due to the high inventory and the too low parity of domestic copper price with foreign copper price. 3. The weak domestic and foreign demand caused the imports and exports of copper materials and copper goods to fall. However, statistics show that the export momentum was stronger than the import momentum, mainly because the boom of the domestic enterprises(including foreign-funded ones)enhanced the market competitiveness of copper materials and copper goods, pushing up the exports while impeding the imports.

Since September 2012, many countries have introduced new stimulus policies. For most of them, the economic data turns for the better,sending a signal that the global economy is bottoming out. Therefore, it is expected that the foreign trade of non-ferrous metals and copper products in 2013 will fare better than in 2012.The imports grew further with the increasing supply of demand of the rise of processing fees. When copper (mainly refined copper)meets the rigid demand of the domestic market, copper financing will remain, but it may be less active than in 2012. The exports of refined copper will be greatly influenced by the price relation caused by the imports, but both exports and imports are expected to be lower than the 2012 level. Domestic economic development has a direct impact on the foreign trade of copper and copper goods. The good economic prospect for 2013 will drive market demand.The decline of the exports will continue but by a smaller margin, while the imports are expected to rebound.