China copper production rose in November on the back of new capacity

SHANGHAI, Dec 6 (SMM) – China’s production of copper cathode rose in November for a second straight month, bolstered by the ramp-up of newly-commissioned projects such as Guangxi Nanguo, Yunnan Copper’s phase two in Chifeng and Zijin Mining’s smelter in Heilongjiang.

SMM data showed that 798,800 mt of copper cathode was produced in China last month, up 2.02% from October and 7.07% from November 2018.

Production in January-November stood at 8.14 million mt, up 2.09% from the same period a year earlier.

With the year drawing to a close, smelters’ rush to fulfill annual production targets also helped lift overall output in November. There barely were smelters affected by maintenance last month.

Some smelters continued to grapple with copper anode and scrap supply shortages last month, but the affected production volume was smaller than the previous month.

Negotiations over 2020 supply of copper concentrate and blister copper, the major raw materials used by Chinese copper smelters, were the primary focus for smelters last month.

With the settled benchmark treatment/refining charges sharply down from 2019 and pessimistic prospects for sulphuric acid, most Chinese smelters are worried about operations in 2020, especially small and medium-sized, private smelters and those frustrated by cash flow woes.

When it comes to December, most smelters are maintaining normal production. There is maintenance scheduled for Guangxi Nanguo this month, while copper anode and scrap supply tightness remains troubling for some smelters.

SMM expects China’s production of copper cathode to rise to 807,600 mt in December, with a year-over-year increase of 6.05%.

Production for the whole year is likely to be 8.95 million mt, up 2.43% from 2018.