SHANGHAI Aug.10 (CBI China)-- Chinese copper and lead smelters have cut back production due to the shortage of copper and lead concentrates.
The China Smelters Purchase Team (CSPT), a group comprising the top nine Chinese copper smelters, announced on August 2nd that the smelters would initiate a coordinated 10-15% cut in production during 2H 2007. China’s copper smelting capacity increased significantly in 1H 2007 leading to a shortage copper concentrate In the domestic market. The treatment /refining charges (TC/RC) for imported copper concentrate continued to fall, and as a result, China’s domestic copper smelters incurred more than RMB 1,000 / mt loss when using imported copper concentrate.
China’s domestic lead smelters were also confronted with higher production costs due to a shortage of imported lead concentrate, and were forced to cut back production. Anyang Yubei Gold and Lead Company stated it would cut lead output by 10% in 2H 2007, and may cut production further in August and September if imported concentrate prices continue to rise. One smelter in Henan Province revealed to CBI that based upon his sources, all lead smelters in Henan have cut back production to some degree.