SHANGHAI, Jul. 21 (SMM) – The average operating rate at Chinese copper smelters was little changed at 89.92% in June as smelters remained active, encouraged by high spot TCs for copper concentrate and rising copper prices, SMM’s latest survey shows.
SMM surveyed 23 Chinese copper smelters, representing 6.41 million tpy in total capacity.
Spot TCs for imported copper concentrate remained above $100 per tonne, attracting Chinese smelters and helping copper concentrate imports post a 21.8% spike for H1.
Copper prices tumbled briefly in early June due to investigations of the financing fraud in Qingdao, but then rallied to leave June’s average spot price above that of H1. Although the average copper premium in China fell 137 yuan per tonne to 316 yuan per tonne in June, traded prices for physical copper remained up around 50,000 yuan per tonne after LME copper prices passed $7,000 per tonne.
Now that most smelters completed maintenance cycles and the improving SHFE/LME copper price ratio is both cutting copper exports and driving imports, SHFE copper stocks are expected to grow faster.
For queries, please contact Michael Jiang at michaeljiang@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn