Net Profit Fall at 12 Major Chinese Copper Smelters in 1H 2016, with Output Rising, Financial Report Shows

SHANGHAI, Sep. 2 (SMM) – Net profit at 12 major Chinese copper smelters, attributable to shareholders, all fell during the first half of 2016, except two companies, according to their half-year financial reports. 

The large-scale decline in net profit is due mainly to sluggish copper prices during the report period, which fluctuated at multi-year lows, and moreover, Chinese yuan’s exchange rate also added financial losses to them for big volatility or financial business. 

Zhongjin Gold Cooperation Limited and Yuguang Gold and Lead Group, however, are the only two reporting strong profits, as the two, with main business not copper products, have gained profits from rising prices of gold, zinc and lead.  

During the report period, output of copper cathode at the 12 listed copper smelters in China totaled 2.58 million tonnes, up 6 per cent on a yearly basis. 

According to SMM data, China’s copper cathode output was 3.81 million tonnes from January to June, up 7.5 per cent year-on-year. SMM attributes to the rise to mainly to coming-online of new copper projects, including Henan Zhongyuan Gold Smelter, Hunchun Zijin Mining and Zhangjiagang United Copper, and less unit maintenance during the report period. 

Moreover, high TCs for copper concentrate also encouraged domestic copper smelters to run at high utilization rate, SMM adds.  

Output of copper concentrate at the 12 companies was 386,000 tonnes (Cu content) in 1H 2016, up 40.98 per cent year-on-year, mainly contributed by output from MMG Limited’s mine in Peru, according to their half-year financial reports.  

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