Half of the exports went to China compared to 70 percent of 171,113 tonnes exported in the same period 1998. "Our exports to China in the first half fell 10 to 20 percent from our estimates earlier this year," a trader with LG International Corp said on Friday. The company's exports in the second half were also expected to fall below its earlier expectations, the trader said, without specifying the company's level of copper rod exports to China. Another trader said LG's second half export of copper rods could fall by 50 percent in the worst case scenario. "Firmer prices on LME have negatively affected our copper rod exports to China," a LG trader said. China has increased itsown production and lowered its imports due to the bullish LME prices, the trader said.

Copper on LME ended at $1,760 on Thursday after briefly touching a 15-month high of $1,764. The trader said the company turned toward southeast Asian countries in the first half as exports to China decreased. Traders said China has required $120-$130 import premium per tonne on a cost-insurance-and-freight (CIF) basis while South Korea's export premiums were $120-$130 a tonne on free-on-board (FOB) basis, usually $20-$30 higher than that of CIF basis. Officials with Taihan Electric Wire Co Ltd said its copper rod exports were low in August because its plant had been shut for two weeks' maintenance.

"But considering slackening orders coming for September to December, the product exports in the fourth quarter are also expected to be bearish," a company official said.