SHANGHAI, Oct 12 (SMM) – China produced 716,800 mt of copper cathode in September, down 2.78% from August but up 4.72% from a year ago, SMM data showed. Growth exceeded SMM's forecast of 741,500 mt
This grew overall output in January-September 11.7% from the corresponding period last year to 6.51 million mt.
Output fell unexpectedly last month as Fuye Group, Dongying Fangyuan and Xinjiang Wuxin put smelters under maintenance and as supply tightness of blister copper lowered utilisation rates at some smelters.
For newly-built or resumed capacities thus far this year, full capacity has been largely reached at Zhongyuan Gold Smelter, Tongling Nonferrous Metals Group's new Jinchang smelter and Yuguang Gold & Lead while output was low at SDIC Jincheng Metallurgy, Chalco Southeast, Western Mining's smelter in Qinghai and Wuzhou Jinsheng.
Environmental restrictions and tight supplies of raw materials hindered the recovery of output of secondary materials.
Copper output in China is likely to grow to 731,600 mt in October, some 1.26% higher than October 2017, as new capacities ramp up output and as some capacities would recover their output from maintenance. The output growth, however, will be limited by maintenance works at Zhongtiaoshan Nonferrous and Daye Nonferrous.
Some smelters told SMM that they would maintain their high operating rates as treatment charges (TCs) for spot concentrate remain at highs and as they attempt to meet annual production targets.
In January-October, overall output is expected to amount to 7.24 million mt, up 10.6% from the same period in 2017, based on production schedules across smelters.
