SHANGHAI, Jun. 25 (SMM) – Copper semis output in China grew 3.4% to 1.49 million tonnes in May due to squeezed profits, cash flow problems and anemic demand, Shanghai Metals Market learnt.
Spot premiums in China’s domestic spot markets remained high in May, eroding profits at copper fabricators that booked limited term shipments. This, combined with the onset of off-season and tight liquidity, despite the PBOC’s targeted RRR cut, resulted in production halts or suspension at some producers, allowing for a small increase in output in May.
The output rose 13.4% year-on-year in May, and year-to-date output through May totalled 6.71 million tonnes, up 17.8% from a year ago, the National Bureau of Statistics released.