Tongling Nonferrous Metals Returns to Profitability in 2016, with 2017 Copper Output Plan Released

Published: Apr 12, 2017 14:46

Save

Tongling Nonferrous Metals Group returned to profitability in 2016 after cutting cost and increasing efficiency, according to its annual report. Copper products remained major contributor of its incom

SHANGHAI, Apr. 12 (SMM) - Tongling Nonferrous Metals Group returned to profitability in 2016 after cutting cost and increasing efficiency, according to its annual report. Copper products remained major contributor of its income.

The company plans to increase its copper concentrate output in 2017 to improve self-sufficiency ratio, but will slash cathode copper output.

Its business revenue was 86.674 billion yuan in 2016, down 0.26% on a yearly basis. Profit belonging to parent company’s shareholders was 180 million yuan, compared to 666 million yuan losses in 2015. Its income from copper totaled 75.93 billion yuan, which accounted for 87.60% of business revenue.

Copper Product Output & Sales

Some indicators fell on a yearly basis because of lower ore grade, cut in copper cathode production and weakening market, according to the company’s annual report. Its copper concentrate output was 47,800 tonnes, down 1.26% on a yearly basis. Copper cathode production fell 1.31% year-on-year to 1.30 million tonnes. Copper semis output was 315,000 tonnes, up 1.72% year-on-year.

Total sales of copper cathode were 1.30 million tonnes, and inventories declined 31.13% year-on-year because sales were higher than production.

Chinese companies have expanded investment in overseas copper mines over recent years due to domestic copper resources tightness. Tongling Nonferrous Metals Group said it looks to increasing self-sufficiency ratio of copper resources, so as to enhance competitiveness.

The company plans to increase copper concentrate output to 49,250 tonnes in 2017, while slashing copper cathode output to 1.21 million tonnes. Silver output in copper concentrate will be 20,686 kg, with 381,300 tonnes of copper semis.

Tongling Nonferrous Metals Group will accelerate copper smelting technology upgrade and furnace transformation in 2017, and push copper anode mud recycling and nonferrous metals recycling projects. Meanwhile, the first phase of the 20,000-tpy precise energy storage ultra thin electronics copper foil project will be completed and come online this year. The Shaxi copper mine is expected to reach operation July 1, 2017.

Potential Risks

The company may face risks which are related to the market, safety and environmental protection, and product price volatility. It will thus enhance inventory management, put emphasis on safety and environmental protection and hedge operation of copper which will help reduce risk from price volatility.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

Tongling Nonferrous Metals copper output copper concentrate copper semis

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

15 mins ago

New York copper prices hit a new record high; high copper prices suppress downstream purchasing, premiums under pressure [SMM Copper Morning Meeting Minutes]

SMM Morning Brief: Overnight, LME copper opened at $13,992/mt, dipped to $13,975.5/mt in early trading, then drifted higher to hit a high of $14,150/mt, before eventually settling at $14,148.5/mt, up 0.75%. Trading volume stood at 20,200 lots, and open interest increased to 253,000 lots, up 1,896 lots from the previous trading day, as bulls added positions. Overnight, the most-traded SHFE copper 2609 contract opened at 107,350 yuan/mt, with an intraday high of 107,840 yuan/mt and a low of 107,300 yuan/mt, and settled at 107,770 yuan/mt, up 0.40%. Trading volume was 38,600 lots, while open interest fell to 214,000 lots, down 2,688 lots from the previous trading day, as bears reduced positions.

15 mins ago

8 hours ago

Copper Prices Reach Two-Month High as U.S. Inflows Surge Ahead of Tariff Decision

Copper prices climbed to around US$14,000 per tonne on the London Metal Exchange (LME), reaching their highest level in two months as traders continued to monitor record inflows of copper into the United States ahead of an anticipated decision on refined copper import tariffs. According to foreign media reports, more than 200,000 tonnes of copper arrived at U.S. ports during July, representing the largest monthly inflow recorded by IHS Markit since it began tracking the data in 2014. The surge has significantly increased inventories at U.S. warehouses and ports while reducing the volume of metal available to consumers in other regions. The inflows have continued despite uncertainty over potential U.S. tariffs on refined copper imports. Although the U.S. Commerce Department was expected to submit its recommendations by the end of June, no formal decision has yet been announced. The sustained premium of U.S. copper prices over LME prices has continued to support profitable arbitrage opportunities, encouraging traders to redirect material into the U.S. market. Market Impact: The concentration of copper inventories in the United States is tightening physical availability elsewhere, reinforcing an already constrained global market. With copper prices remaining near historic highs and demand supported by electrification, power infrastructure and advanced manufacturing, any tariff decision that further alters global trade flows could intensify regional supply imbalances and provide additional upside for international copper prices.

8 hours ago

15 hours ago

【SMM Flash】Middle East August Sulfur Contract Prices Released

KPC has set the August Kuwait Sulphur Price (KSP) at $865/mt FOB, down by $85/mt from the July KSP of $950/mt; QatarEnergy has kept its August Qatar Sulphur Price (QSP) unchanged at $890/mt FOB from July; ADNOC has kept its August official selling price (OSP) for the Indian subcontinent unchanged at $1,000/mt FOB Ruwais from July.

15 hours ago