[SMM data] in September, China's refined copper production was lower than expected due to the maintenance of some refineries.

Published: Oct 12, 2018 10:02 (GMT+8)

SMM12, 12 March-SMM China's refined copper production in September 2018 was 716800 tons, down 2.78 percent from the previous month, an increase of 4.72 percent over the same period last year, and the cumulative output from January to September was 6.506 million tons, an increase of 11.7 percent over the same period last year.

In September, the output of refined copper was lower than expected, mainly due to the maintenance of smelters such as Fuye Group headquarters, Dongying Fangyuan, Xinjiang Wuxin Copper Industry, and some refineries due to the shortage of crude copper raw materials and the decline in capacity utilization. With the exception of the Zhongyuan Gold smelter, Xinjinchang and Yuguang Gold and lead, the production capacity of the new expansion and resumption of production during the year, except for the Zhongyuan Gold smelter, Xinjinchang and Yuguang Gold and lead, the rest of the Guotou Jincheng Metallurgy, Chinalco Southeast, Qinghai and Wuzhou Jinsheng are still on the low side or no output. Recycled copper still shows no sign of recovery due to environmental protection and tight suppression of raw materials.

According to the production schedule of various refineries in October, SMM is expected to produce 731600 tons, an increase of 1.26 percent over the same period last year. The month-on-month increment is mainly due to the release of new expansion capacity and the recovery of pre-maintenance refineries. However, the overall increment will still be subject to the maintenance of Zhongtiao Mountain Nonferrous and Daye Nonferrous Metals. Some refineries said that the current spot copper concentrate TC remained high, coupled with the completion of annual production demand at the end of the year, will maintain a high operating rate, with a cumulative output of 7.2376 million tons from January to October, an increase of 10.6 per cent over the same period last year.

Will the strike make a comeback in 2019 and what is the growth rate of copper concentrate? Can the current situation of domestic copper scrap cycle system make up for the gap of copper scrap import? New energy is expected to support copper consumption? Please pay attention to the "2018 China Nonferrous Metals Annual meeting and 2019 (SMM) Metal Price Forecast Conference" held by Shanghai Nonferrous Metals Network in Shanghai on October 19, at which there will be industry bigwigs, executives of well-known enterprises, and senior analysts of SMM copper. For everyone to see the sun, a detailed explanation of the copper market. At that time, more than 1000 elites and institutions in the industry will gather together, and there will be more than 10 well-known media reports at home and abroad. An industry feast is coming, we are waiting for your arrival!

"Click to enter the registration channel

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
Fatal Accident Reported at Codelco’s Radomiro Tomic Mine
1 hour ago
Fatal Accident Reported at Codelco’s Radomiro Tomic Mine
Read More
Fatal Accident Reported at Codelco’s Radomiro Tomic Mine
Fatal Accident Reported at Codelco’s Radomiro Tomic Mine
Chile’s mining regulator reported on October 1 that a worker had died in an accident at Codelco’s Radomiro Tomic copper mine in northern Chile. Preliminary information indicates that the incident occurred in an area associated with a conveyor belt near Calama. Chile’s National Geology and Mining Service has sent personnel to inspect the site and take appropriate administrative measures. The worker’s identity, employer and the cause of the accident have not been disclosed, while an investigation remains under way. No other related emergencies were reported. Codelco and the authorities have not announced any operational suspension or production impact.
1 hour ago
Escondida Supervisors Reject BHP Contract Offer, Paving Way for Potential Strike
2 hours ago
Escondida Supervisors Reject BHP Contract Offer, Paving Way for Potential Strike
Read More
Escondida Supervisors Reject BHP Contract Offer, Paving Way for Potential Strike
Escondida Supervisors Reject BHP Contract Offer, Paving Way for Potential Strike
Supervisors at BHP's Escondida copper mine in Chile have rejected the company's final collective bargaining offer, increasing the risk of a potential strike at the world's largest copper mine.​ According to foreign media reports, 95% of participating members of the 1,020-member supervisors' union voted in favour of strike action after rejecting BHP's latest contract proposal.​ Under Chilean labour law, the union and the company must now enter a mandatory five-day government-led mediation process before any legal work stoppage can begin. The mediation period can be extended by another five days if both parties agree.​ The union said BHP's offer did not represent a material improvement over the existing contract and criticised proposed requirements for supervisors to train in plant operating activities, including truck driving. BHP has said it plans to seek mediation through Chile's Labour Inspection Office in an effort to reach an agreement.​ The latest labour development comes shortly after a fatal maintenance-related accident at Escondida, which temporarily disrupted operations. The supervisors' union had previously rejected BHP's request to extend negotiations following the incident. Operations at Escondida have since been gradually resuming.​ The 95% vote in favour of strike action represents a significant escalation in collective bargaining negotiations at Escondida, although there has been no strike or reported production impact from the labour dispute at this stage. The mandatory mediation process provides an opportunity for BHP and the union to reach an agreement before industrial action begins. Given Escondida's position as the world's largest copper mine, any prolonged work stoppage could increase near-term copper supply uncertainty, making the outcome of the mediation period an important market focus.
2 hours ago
Marimaca Secures Grid Connection Authorization for Marimaca Oxide Deposit
2 hours ago
Marimaca Secures Grid Connection Authorization for Marimaca Oxide Deposit
Read More
Marimaca Secures Grid Connection Authorization for Marimaca Oxide Deposit
Marimaca Secures Grid Connection Authorization for Marimaca Oxide Deposit
Marimaca Copper has received grid connection authorization for its Marimaca Oxide Deposit (MOD) in Chile and has agreed key commercial terms for a power-purchase-agreement framework, advancing the project's power infrastructure planning as development progresses.​ The grid connection authorization provides a pathway for MOD to connect to Chile's electricity system, while the agreed commercial terms establish the basis for a future power supply arrangement. Marimaca said the framework is intended to support the project's access to 100% renewable electricity.​ The company described the development as an important de-risking milestone for MOD, as reliable long-term power supply is a key requirement for the planned mining and processing operation.​ Marimaca is advancing MOD as an oxide copper development project in northern Chile. The company has been progressing permitting, engineering and other project-development work as it moves the asset toward a potential construction decision.​ The power milestone strengthens the project's infrastructure readiness, but a final power-purchase agreement and full project execution remain subject to further development steps and contractual completion.​ Securing grid connection authorization reduces an important infrastructure risk for the Marimaca Oxide Deposit by providing greater clarity on how the project could access long-term electricity supply. The proposed use of renewable power could also support lower-emissions copper production. Attention will now turn to finalization of the power-purchase agreement and progress on the remaining permitting, financing and development milestones required before construction.
2 hours ago