China Base Metal Output Data in June 2017, SMM Exclusive Data

SMM Morning Meeting Summary: Last Friday night, LME copper opened at $14,332.5/mt, dipped to $14,277/mt in early trading, then drifted higher, reaching $14,419/mt near the close, and finally settled at $14,378.5/mt, up 0.11%. Trading volume reached 17,000 lots, and open interest stood at 266,000 lots, an increase of 1,102 lots from the previous trading day, driven by bullish positioning. Last Friday night, the most-traded SHFE copper 2610 contract opened at 108,760 yuan/mt, hit a low of 108,720 yuan/mt in early trading, then rose, reaching a high of 109,390 yuan/mt near the close, and finally settled at 109,290 yuan/mt, up 0.16%. Trading volume reached 26,000 lots, and open interest stood at 211,000 lots, an increase of 1,608 lots from the previous trading day, driven by bullish positioning.

Chile's Caserones copper-molybdenum mine was previously affected by extreme winter weather, experiencing two winter storms that disrupted power supply and site access, causing an actual impact on mine production. The impact of this event has now carried over from a short-term operational disruption into full-year output expectations: Lundin Mining subsequently lowered its full-year copper production guidance for Caserones from the original 130,000–140,000 tonnes to 120,000–130,000 tonnes. By-product molybdenum output is expected to come under pressure in tandem, though a specific molybdenum production guidance figure has not yet been separately disclosed.

Guyana’s Ministry of Tourism, Industry and Commerce has warned the domestic scrap-metal industry following a recent case involving stolen copper, illegal purchasing and attempted movement of the material. Licensed dealers found handling illegally obtained copper will face immediate licence cancellation and possible prosecution. More importantly, the government warned that if illegal practices persist, it could take steps to shut down the scrap-metal trade altogether. No blanket ban has been introduced yet, but the statement signals a notable regulatory risk for Guyana’s copper scrap trade.