SHANGHAI, June 24 (SMM) – Recently, Jiangxi Province was ht by heavy rain, and SMM contacted Jiangxi Copper, the largest copper producer in China for real-time information.
Jiangxi Copper told SMM that production at its copper mines and plants haven't been affected by flooding so far. However, if heavy rain continues, railway transportation will be negatively affected, and purchases and sales will be hampered as a result.
At present, Jiangxi Copper maintains daily output at around 2,500 mt. If the strong rain continues to hit the region, local electricity supply will be negatively affected, and this will indirectly affect production. In addition, the flood has hampered some railway transportation from Yingtan to other regions, which will delay deliveries of contracts from Jiangxi Copper. SMM contacted these long-term contract buyers concerning deliveries of contracts. They said the damaged railway section is now under repair, and many of them have returned to normal, and supply will not tighten even if transportation is hampered in 2-5 days.
SMM believes heavy rain in China has not affected supply in domestic copper markets so far. However, market supply will face challenges, as a series of problems, such as electricity supply restrictions, production cuts or suspensions, or transportation stoppage will happen, if heavy rain continues.
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