SHANGHAI, Feb. 1 (SMM) – Daye Nonferrous Metals Group set 2013 operating revenue target at RMB 80 billion and planed to produce 450,000 mt of refined copper in Hubei. The company's operating revenue was RMB 63 billion in 2012.
According to sources, Daye Nonferrous Metals Group formally commenced its 300,000 mt/yr refined copper project in October 2012. Coupled with previous 400,000 mt capacity, the company's refined copper capacity should reach nearly 700,000 mt in 2013. Based on statistics, including output at its Guangdong branch, refined copper output at Daye Nonferrous Metals Group was roughly 350,000 mt in 2012, 91% of the 385,000 mt target set in earlier 2012.
With more new capacities starting production, the company will produce an increasing amount of refined copper in 2013. China's copper supply may fall into a slight surplus from previous shortage in 2013.
Based on SMM survey, the average operating rate at major Chinese copper smelters remained above 90% since 3Q 2012 and is likely to remain so in the future.
Chinese copper smelters saw a rise of over 10% in TC/RC for long-term copper concentrate contracts earlier 2013. Owing to sufficient global ore supply, increase in copper concentrate TC/RC will entice large Chinese copper smelters to operate at full capacities during 2013.
High Chinese copper stocks and rising copper supply may exert a surprised impact on copper prices at a time when cash flows tighten.