SHANGHAI, Nov. 14 (SMM) – According to the NBS, China's refined copper output during October was 520,000 mt, up 8.6% YoY and 1.8% MoM, recording the highest monthly level.

NBS data was in line with SMM's survey, showing that the average operating rate during October at China's major copper smelters was 91.4%, the highest point this year, and due largely to the following reasons. First, copper smelters have kept high operating rates since early 4Q to meet yearly production target. Second, spot TC/RC for copper concentrate has been climbing, rising above USD 70/mt (cents 7.0/lb) from the previous USD 60/mt (cents 6.0/lb), which stimulated smelters' enthusiasm in increasing production.

As LME copper prices slipped quickly in late October, the SHFE/LME copper price ratio improved noticeably. Combined with relatively high spot TC/RC for copper concentrate, SMM believes that China's refined copper output will continue to move above 500,000 mt in both November and December.