AsianFin – China is set to ramp up imports of off-exchange refined copper from the Democratic Republic of Congo (DRC) this year, as traders and analysts anticipate tighter supply and potential disruptions to U.S. scrap shipments.

This trend underscores China's deepening reliance on the DRC, now the world’s second-largest copper producer, following years of heavy Chinese investment in the country's mining sector. As global supply chains face uncertainty, Chinese buyers are increasingly turning to Congolese copper to stabilize the market.

Unlike exchange-registered copper, off-exchange equivalent grade (EQ) copper is not listed on trading platforms like the Shanghai Futures Exchange, despite meeting the same quality standards. Because producers avoid exchange registration fees, EQ copper is often priced more competitively than registered metal.

Six market analysts and traders expect EQ copper’s import volume and market share in China to expand further in 2024. Last year, EQ copper made up 62% of China’s refined copper imports, a sharp rise from just under 50% in 2022, according to Shanghai Metals Market (SMM).

As China seeks to secure stable copper supplies, the growing share of EQ copper highlights both the strength of its trade ties with the DRC and its ongoing efforts to mitigate global supply chain risks.