SHANGHAI, Nov 8 (SMM) – China's production of copper cathode in October gained 0.53% from September and stood at 720,600 mt, showed SMM data. This is down 0.26% from a year ago. This grew overall output in January-October from the corresponding period last year to 7.23 million mt.
Growth in October missed SMM's forecast of 731,600 mt due to production cuts across three major smelters Daye Nonferrous, Jinchuan Group, and Northern Copper Industry. At the end of September, Northern Copper Industry shut its smelter in Houma city of Shanxi province. The Houma smelter had an annual capacity of around 100,000 mt.
New capacity that commissioned at Chinalco Southeast Copper and SDIC Jincheng Metallurgy in the second half of the year did not produce copper cathode in October. Other copper smelters kept regular operation last month. Some smelters told SMM that they would maintain high operating rates as treatment charges (TCs) for spot concentrate remain at highs and as they attempt to meet annual production targets.
Copper output in China is likely to grow to 737,900 mt in November, some 2.78% higher from a year ago as new capacities ramp up. Output growth will be minimally limited by maintenance works at Jiangxi Copper and Huludao Hongyue Northern Copper.
In January-November, overall output is expected to amount to 7.96 million mt, up 9.6% from the same period in 2017, based on production schedules across smelters.
