SHANGHAI, Nov. 5 (SMM) – SMM's most recent survey of 21 major domestic copper smelters (total capacity: 5.35 million mt/yr) yielded the following insights:

1) Average Operating Rate 91.36% in October
The average operating rate during October at copper smelters was 91.36%, up 0.66% from September and the highest level of the year. The average rate was also up 7.35% YoY. Large domestic copper smelters were maintaining high operating rates during October, while high TC/RC for copper concentrate of USD 70/mt (cents 7.0/lb) boosted medium smelters' production rates as well. Since crude copper supply was ample, smelters increased processing fees by RMB 200/mt, to RMB 1,300/mt.

2) Refined Copper Inventories Flat, Spot TC/RC for Copper Concentrate Up
Refined copper inventories at the surveyed copper smelters were 59,960 mt last week, and down slightly from 60,850 mt in September's survey for two reasons. First, cash flow pressure at some copper smelters have grown as the year-end nears, forcing them to sell more aggressively. Second, increased raw material purchases forced copper smelters to cut refined copper stocks.