SHANGHAI, Aug. 28 (SMM) – China’s largest copper producer Jiangxi Copper Co. (JCC) said its net profits fell by 3.55% year-on-year in the first half of the year, according to its interim report filed to the Shanghai Stock Exchange today.
The company created a net profit of 1.2 billion yuan ($194.1 million), or 0.35 yuan per share, in the first six months.
JCC attributes the profit decline to low copper prices. Slow recovery in advanced economies, escalating geopolitical crises, and downside risk confronting Chinese economy largely hit nonferrous metal industry. “Copper prices fell significantly in the first quarter, and have remained low in H1, albeit a slight pick-up in Q2. Moreover, market risks increased due to higher costs and weak demand downstream,” the company noted in the report.
Copper prices on the London Metal Exchange dipped as low as $6,321 per tonne in H1, and ended June at $7,014 per tonne. The average price through the first six months was just $6,912 per tonne, down 8.3% from a year ago.
Although commodity prices rebounded by the end of the second quarter on China’s modest stimulus and slightly improving liquidity conditions, JCC expects the restart of Indonesia’s copper concentrate exports and commissioning of new copper mines across the globe will weigh on copper prices in the latter half of the year.
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