Copper futures on MCX were trading at Rs 485 per kg, down 1.2%. The prices tested a high of Rs 489.95 per kg, and a low of Rs 483.8 per kg. Though China domestic copper cathode output increased year on year in May, the market is seeing stronger demand for the material, which supports analysts bullish sentiment for the red metal.
From a demand perspective, tenders for the first batch of [electric vehicle] charging stations increased by 204% on a yearly basis, which was much better than expected and anticipated to promote the high growth of the charging pile industry and become a new demand engine for copper demand this year.
Last week, May customs data from China showed import volumes of unwrought copper up nearly 22% compared to the same month last year at 475,000 tonnes. It was the the highest May figure for refined copper for at least a decade according to Reuters calculations. The numbers suggest buyers are facing a shortfall in scrap copper, said an analyst at Antaike, the research arm of the China Nonferrous Metals Industry Association.
The demand for copper concentrate is surging. Concentrate cargoes landing at Chinese ports increased 37% from May 2017 to total 1.58m tonnes in January. Concentrate imports for January to May now total 7.8 million tonnes, the highest for the period since at least 2000.