LONDON, June 17 (Reuters) - China's copper scrap imports

have soared due to shortages of concentrate that is processed

into refined metal used in the power and construction

industries, but record high prices mean U.S. shipments are

likely to pause.

Smelters in top copper consumer China have faced concentrate

shortages since last year when First Quantum lost the

right to operate its Cobre mine in Panama, which accounted for

1% of global mined supply in 2022.

China's copper waste and scrap imports overall climbed 25%

to 783,004 tonnes in the first four months of this year compared

to the same period in 2023, according to Trade Data Monitor

(TDM).

TDM data also shows China's scrap imports from the United

States jumped 37% to 153,059 tonnes in January to April this

year from the same period last year.

Copper scrap from the U.S. is priced at a discount to the

CME price, which hit a record $5.1985 a lb or $11,460 a

tonne on May 20 due to parties which had sold futures being

forced to buy them back or roll over positions.

"Chinese buyers are deferring U.S. copper scrap shipments,"

a source at a Chinese trading firm said, adding that China's top

scrap supplier was the United States.

The source said some Chinese buyers were looking to price

U.S. scrap against copper on the London Metal Exchange (LME),

trading at a discount to CME prices.

Deteriorating production at other mines, many in Latin

America, has exacerbated concentrate shortages and Chinese

smelters have imported more copper scrap to feed their furnaces

and protect their margins.

China is home to half of the world's copper smelters and the

largest buyer of raw materials including concentrates and scrap.

Scrap typically accounts for about 9 million tonnes or

roughly 30% of global copper supplies annually.

"Due to concentrate tightness copper smelters are processing

more scrap and blister," said Macquarie analyst Alice Fox.

"Given the cost of physical collection and processing -

during periods of significant price movement, scrap tonnages on

a contained copper basis can move by up to one million tonnes

per annum, effectively rebalancing the market during periods of

high or low prices."

Macquarie expects the gap between copper supply and demand

to widen to 1.6 million tonnes in 2030 from a deficit around

86,000 tonnes this year.

(Reporting by Pratima Desai; Editing by Ros Russell)