SHANGHAI, Sep 6 (SMM) – SMM data showed that China’s copper cathode output stood at 819,400 mt in August, down 1.3% month on month, but up 1.1% year on year.
The smelters in Fangchenggang and Wuzhou in Guangxi reduced production by about 15% in August amid the power curtailment, and some other smelters in Guangxi advanced their maintenance. The output of a smelter in north Shandong was slightly affected by the environmental protection. The production in Henan was little impacted by the power curtailment. The maintenance plans in other regions were carried out as expected.
TCs for domestic copper concentrate exceeded $60/mt, bringing higher profits to smelters. Prices of sulphuric acid remained high amid the strong overseas demand. Smelters maintained high operating rates for the high profits, and some smelters have stepped up production since August.
However, copper scrap supply in domestic market tightened, and RCs fell sharply. The RCs in some smelters even dropped below the break-even point, seriously squeezing the profits, which to some extent limited domestic copper cathode output.
Smelters’ maintenance is coming to an end in September. Only two large smelters in Guangxi will continue maintenance, with the output to be significantly affected. Some plants stepped up production in advance for the higher profits in crude smelting. However, the tight supply of copper scrap may cause some large refining smelters to slightly reduce production.
SMM predicts that domestic copper cathode output in September will be 832,300 mt, up 1.6% month on month and 4.1% year-on-year. Output is estimated to total 7.52 million mt from January to September, a year-on-year increase of 10.7%.
