Improved utilisation rates at new capacity grow copper output in Nov

SHANGHAI, Dec 7 (SMM) – China produced 746,100 mt of copper cathode in November, up 3.53% from October and 3.91% from a year earlier. This grew output in January-November to 7.97 million mt, standing 9.7% higher than same period in 2017.

High spot concentrate treatment charges and sulphuric acid prices prompted smelters to operate in high gear last month. Improved utilisation rates across newly-commissioned and resumed capacities of Chalco Southeast, Western Mining's smelter in Qinghai, SDIC Jincheng Metallurgy and Wuzhou Jinsheng offset the impact of maintenance at some plants and helped grow overall output.

As of the end of November, all new capacities that came online this year have managed to produce copper cathode and those of Zhongyuan Gold Smelter, Tongling Nonferrous Metals Group's new Jinchang smelter and Yuguang Gold & Lead have reached full capacity.

Rising utilisation rates across new capacities and a rush to meet annual production targets are expected to grow copper output in December. SMM forecasts that China’s output of copper cathode would grow 2.88% month on month to 767,600 mt in December. Output in 2018 is expected to stand at 8.74 million mt, up 9.1% from 2017.