|
MUMBAI, 2 Dec (Commoditiescontrol):China exported 308,827.3 metric tons (mt) of copper pipe and tube from January to October 2024, registering a 14.7% year-on-year (YoY) increase, according to data from the General Administration of Customs compiled by SMM. The surge was driven by robust overseas demand and favorable export margins throughout the year.
However, the landscape may shift as former US President Donald Trump’s reelection and his proposed 25% tariff on imports from China, Mexico, and Canada have raised global trade concerns.
Key Export Markets and Trade Modes
Exports to the US totaled 22,344.86 mt during the period, contributing 7.24% of China's total copper pipe and tube exports. Mexico and Canada accounted for 6,377.02 mt (2.07%) and 4,306.28 mt (1.39%), respectively. The majority of shipments utilized trade modes such as bonded control areas, entrepot trade, and processing with imported materials.
Shift in Production Strategies
Major Chinese producers have been preparing for such trade challenges. Golden Dragon Precise Copper Tube Group Inc. and Hailiang Group operate production facilities in the US and Mexico, enabling them to reduce dependency on direct exports from China. Notably, Golden Dragon’s Mexican facility primarily caters to local demand, with limited exports to the US market.
If the proposed tariffs materialize, China’s share of copper pipe and tube exports to the US is expected to decline. In contrast, operating rates at overseas factories of Chinese firms could rise, allowing them to mitigate tariff impacts and sustain supply to North American markets.
Outlook
The strong export performance so far this year highlights China’s competitiveness in the global copper pipe and tube market. However, escalating trade tensions may alter market dynamics, compelling Chinese exporters to rely more on overseas manufacturing to circumvent barriers.
As the year draws to a close, global markets remain on edge, monitoring potential US policy shifts and their implications for copper trade flows and supply chains.
(By Commoditiescontrol Bureau; +91 98201 30172)
|
0 Comments 
Post Comment 
