SHANGHAI, May 9 (SMM) – China’s copper cathode output in April edged higher from a month ago as smelters resumed production and new capacity further ramped up with the spread of the coronavirus slowing down in China.
The latest SMM survey showed that China produced 752,400 mt of copper cathode in April, 1.17% higher on the month and 6.5% higher on the year. The year-on-year increase was due to a low base in 2019 as concentrated smelters maintenance occurred in Q2 last year.
The accumulative production in the first four months of 2020 came in at 2.91 million mt, down 0.28% from the same period last year.
Operation pressure facing Chinese copper smelters eased in April as improved consumption lifted prices of sulphuric acid. Sulphuric acid stopped to be sold at discounts in most regions, except for in north China. Nonetheless, prices of sulphuric acid remained markedly lower than the production cost.
The coronavirus outbreak outside China disrupted mining operations and shipment from major ore production countries, especially Peru, in April. This reduced the delivery of seaborne copper concentrate and left Chinese smelters worried about near-term supply of raw materials. More smelters have planned for maintenance in the second quarter, which could negatively affect copper cathode output in June and July.
According to production schedules at smelters, domestic copper cathode output in May is estimated at 740,100 mt, 1.38% lower month on month but 16.82% higher year on year. The accumulative output in January-May is estimated at 3.64 million mt, up 2.71% from the same period a year ago.
Greater impact of maintenance and the constraint of raw materials supply will account for the lower output for the month of May.
