China’s Copper Wire Rod Exports Surge in November 2024 but Face Challenges Ahead
China’s exports of refined copper wire with a maximum cross-sectional dimension exceeding 6mm reached 6,303.98 metric tonnes (mt) in November 2024, marking a 26% month-on-month (MoM) increase and a 68.3% year-on-year (YoY) rise. Cumulatively, from January to November 2024, exports totaled 57,600 mt under HS code 74081100.
The rebound in copper wire rod exports during November was driven by two primary factors. Firstly, companies ramped up production and operated at full capacity ahead of the cancellation of the copper semis export tax rebate policy, partially offsetting anticipated reductions in export volumes. Secondly, several producers intensified efforts to fulfill long-term contracts before the year’s end, further boosting export numbers.
Export destination rankings reveal an upward trend for most of China’s top ten export destinations. Notably, exports to Singapore nearly doubled, increasing from 533.54 mt in October to 1,033.98 mt in November, representing a 93.8% MoM and 151.49% YoY rise. Malaysia and Vietnam also exhibited remarkable YoY growth, with export volumes climbing by 546.85% and 268.69%, respectively, securing their ranks as significant destinations.
Despite these gains, structural shifts within the industry are creating headwinds. Many major copper wire rod exporters have transitioned from Ordinary Trade orders to processing trade, resulting in higher processing costs. This shift has led to increased processing fees, diminished downstream acceptance, and reduced order volumes. Additionally, the continued opening of the import window in December is expected to negatively impact export profitability, further diminishing export orders.
As a result, analysts at SMM anticipate a substantial decline in copper wire rod export volumes in the coming months, as rising costs and declining profits weigh on the sector’s performance.
