SHANGHAI, Oct. 23 -- Copper oversupply concerns have resurfaced after Chinese output hit a record high for the second month running with 395,000 mt in September.
This output was 8% higher than in August and 20.5% higher year-on-year, according to the national statistics bureau.
"The high output figure further sparked oversupply concerns and market players are speculating about the volume of hidden stocks in China," said a trader in Shanghai.
"Demand is not good and premiums keep falling, from $70-80 last week to a low of $55 this week," he added.
"China's imports remain robust while local output is also at high levels, with capacity much expanded this year," said a trader in Beijing.
Latent oversupply concerns had already held back Shanghai copper futures amid generous gains on the LME, he said.
"LME copper regained strength and rebounded to more than USD 6,600/mt, but the increases in Shanghai were much narrower, mostly due to oversupply concerns," he added.
Cooper output for the first nine months of the year was 8% higher year-on-year at 3.1 million mt, according to the bureau.
Meanwhile, primary aluminum output also rose to a record high in September for the second month in a row.
Output increased 7.6% from August to 1.21 million mt in September, up 5.6% year-on-year, taking the nine-month total to 9.09 million mt, up down 7.6% year-on-year.
(Source: Metal Bulletin)