SHANGHAI, Mar. 23 (SMM) – Ten major Chinese copper smelters agreed to cut output in late 2015, to tide over the tough period following sharp price declines.
How will the cut plan affect Chinese copper output in 2016?
“The joint cut plan for 2016, agreed among the ten smelters, will be achieved, but domestic output for the whole year is not expected to fall,” Xu Changning, senior economist from Tongling Nonferrous Metals Group, said at 2016 SMM Copper&Aluminum Summit.
High 2016 term TCs for copper concentrate remain profitable for copper smelters, and this will encourage production at other smelters, Xu explained at the Summit in Shanghai.
In late 2015, Chinese major copper smelters met to discuss over production cuts after prices tumbled to six-year lows, agreeing to slash output by around 350,000 tonnes.
“China’s copper refining capacity is expected to increase in 2016, but the growth of new refining capacity will slow down,” SMM copper analyst noted at the Summit from Mar. 17-18, predicting around 450,000-tonne growth in newly-increased capacity, down from a 750,000-tonne increase in 2015.
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