African copper exports to China disrupted amid Tanzania unrest

African copper shipments to China are being disrupted by the temporary closure of a crucial exporting port in Tanzania following election unrest.

Copper traders and producers in the central Africa copperbelt are now seeking to reroute cargoes from the Port of Dar es Salaam, leading to congestion at other ports including Durban, in South Africa, according to several people involved in the market. The port closure also means that copper already delivered to the port is stuck there for now, some of the people said, asking not to be identified discussing private business matters.

The Port of Dar es Salaam is the heart of the copper and cobalt trade from mines in the Democratic Republic of Congo and Zambia to China, which consumes more than half of the world’s copper production. The port has attracted growing flows of metal by offering more competitive freight rates for China-bound shipments.

One senior copper trader estimated that roughly two-thirds of African copper shipments to China typically move through Dar es Salaam.

Logistics firm C Steinweg Group, which operates warehouses at the port, said on Thursday that its facilities would be closed through at least Friday.

Speaking privately, representatives from two producers and three traders said they were hoping that the disruptions would be short-lived, but some have already re-routed copper to Durban, as well as to Namibia’s Walvis Bay and Mozambique’s Beira ports.

(By Julian Luk)