China copper output expands 15% in Jun

SHANGHAI, Jul 5 (SMM) – Copper cathode production across China expanded 14.96% from May to stand at 728,300 mt in June, showed an SMM survey, as maintenance at some smelters ended and new, expanded capacity ramped up.

Output in June, some 0.8% higher than a year ago, beat SMM’s previous expectations, as Zhongyuan Gold Smelter and Fuye Group produced more than planned.

China’s output of copper cathode came in at 4.28 million mt in the first half of the year, down 1.18% from the same period last year, dragged by slower-than-expected ramp-up of new, expanded projects and concentrated maintenance at smelters.

Unexpected developments at some smelters, such as cash flow issues, safety checks, equipment failure and environmental woes, also weighed on production in the first six months.

SMM research found that low spot copper concentrate treatment charges and sulphuric acid prices, and tightness in cold charge supplies have yet to significantly impact production at smelters.

Secondary copper smelters did not report sharply lower production, either.

Smelters remain cautious about capacity curtailments or suspension, as those actions are likely to have a greater impact than thinner profits or losses.

Yunnan Tin, Baiyin Nonferrous, Tongling Aolu and Fuye Group will conduct maintenance in July. Impacted capacity by maintenance would be much smaller than that in the second quarter.

Output of copper cathode across China is expected to rise to 747,100 mt in July, up 2.93% from a year ago. This will bring output in January-July to 5.02 million mt, with a smaller year-over-year decline of 0.59%.