Chinese users resort to an unfinished Congolese copper to reduce narrow width

Shanghai (Reuters) – China will import more refined copper outside this year, according to analysts and merchants, as the output of Congo mutations is looking for users and users aspires to reduce the shortage and go to a possible disruption of the United States.

The expected increase in the growing dependence on China, the world’s largest copper user, shows the refined metal supply of the Democratic Republic of the Congo (DRC), which is now the second largest copper producer in the world after years of huge investment in Chinese mining there.

Copper charges are usually from the Congo (EQ) because the producers did not pay for its registration on a stock exchange like the future Shanghai Stock Exchange, which means that it cannot fulfill the contracts in this market. This makes eq copper relatively cheaper than the registered metal even though it meets the same quality specifications.

Six analysts and merchants participating in the Chinese copper market said they expect the import of EQ Copper and the market share will grow again this year. EQ Copper represents 62 % of refined copper imports in China last year, an increase of less than half in 2022, according to the Shanghai Metal Market (SMM).

The refined copper market remains narrow with the superiority of global demand for supply at 9 of 12 months in 2024, according to data from the Global Mineral Statistics Office. Citigroup expects a deficit of 136,000 metric tons in 2025.

Low -quality high -quality copper EQ is a significant clouds of small to medium -sized Chinese wires, who are pressed due to high prices for refined copper. Prices on the London Metal Exchange (LME) increased by 9 % since the beginning of this year and increased by 18 % from last year.

“EQ has been very common in China over the past few years. The main reason for this is that the EQ Copper quality identical to the recorded brands while at a lower price,” said one of the copper traders.

Nearly three quarters of the Congo, a million tons of refined copper production, went to China last year, according to LSEG data and Chinese customs. The largest part of that was eq copper, according to SMM.

Refined copper imports of the Democratic Republic of the Congo to China in 2024 were seven times higher than 2019.

The EQ Copper premium with a metal content for Mininum 99.9935 % on the price of LME $ 3-15 per ton, according to FastMarkets data on March 4. Compared to $ 50 to $ 80 per ton for copper registered with the same metal content.

This opponent reflects the lack of registration fees, but also the distinctive registered copper orders because its purity and quality is recognized by the stock market.