SHANGHAI, Oct. 25 (SMM) –
According to the National Bureau of Statistics (NBS), China’s output of copper concentrate was 119 kt in September, up 8 kt, or 4.20%, from 111 kt in August. YTD output was 925 kt, up 20.80% YoY, indicating China’s copper concentrate output is continuing to grow rapidly. Demand for domestic copper concentrate was higher due to growing output at domestic copper smelters and from the unfavorable price ratio. In addition, surging copper prices also stimulated mine operators to increase production.
According to the NBS, China’s output of refined copper was 405 kt in September, up 8 kt, or 2.0%, from August levels, and in line with SMM predictions. According to the SMM survey of domestic copper smelters, unit maintenance at smelters ended in August, causing operating rates to improve. In addition, the expanding price gap between refined and scrap copper also helped smelters which use scrap copper as the raw material increase production, further contributing to increases in output.
According to the NBS, China’s output of copper semis was 896 kt in September, down 23 kt from 919 kt in August, or a drop of 2.5% MoM. One major reason behind falling copper semis output was electricity restrictions in Jiangsu and Zhejiang provinces, which not only negatively affected local copper processing enterprises, but also wire and cable, enameled wire, and other producers in those regions. Anhui province has now also implemented power restrictions, and coupled with restrictions expanding into more regions and the impact from production slowdowns during the National Day holiday, SMM believes China’s copper semis output will not show any improvements in October.
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