Average Operating Rate at Chinese Copper Smelters Down to 86.48% in Mar.

SHANGHAI, Apr. 24 (SMM) – Chinese copper smelters saw a 1.58% decline in average operating rate to 86.48% in March, SMM’s latest survey revealed.

SMM surveyed 24 copper smelters, covering 6.27 million tpy in capacity, in March, and found that the drop in operating rates was partly caused by falling copper prices.

SMM’s average price for physical copper fell during March by 3,885 yuan per tonne, or nearly 8%, to hit 46,374 yuan per tonne.

The narrowing price gap between scrap and refined copper, and low selling interest at scrap suppliers drove down operating rates at those smelters which use scrap copper as raw material. 

Low price ratio between Shanghai and London markets in March also created difficulties for domestic scrap copper traders to replenish stocks from overseas markets, which caused them to hold back goods as well. Seven qualified smelters were encouraged to ramp up exports through tolling trade, but other smelters reported greater losses from copper concentrate imports.