China Copper Cathode Output in Feb Stood at 835,700 mt, up 1.1 MoM

SHANGHAI, Mar 9 (SMM) - Domestic copper cathode output in February stood at 835,700 mt, up 2.1% month-on-month (MoM) and 1.7% year-on-year (YoY).

Overall, domestic smelters resumed the production steadily in February. After the output of several large smelters in the south returned to normal levels, the overall domestic copper cathode output rose both MoM and YoY. Only a small number of smelters in north China were affected by the Winter Olympics, reducing the output by about 15,000 mt. On the raw material side, the market still maintained relatively ample supply, and the inventory of copper concentrate among smelters stood high. With the successive launch of new capacities of overseas mines, the spot TC of copper concentrate has exceeded $65/mt In terms of blister copper, blister copper under long-term orders that was stranded overseas in the second half of last year arrived in China, and the output of some smelters continued to increase due to large inventories of blister copper. At the same time, the prices of sulphuric acid rallied on rising domestic demand and strong overseas consumption, and the smelters maintained high production enthusiasm on lucrative profits.

Judging from the production plans in March, the smelters in north China will gradually recover from the disruption of the Winter Olympics, while some smelters will conduct maintenance in late March. However, under the premise of high blister copper supply in the market, the output of copper cathode will be little affected. Meanwhile, the smelters have not been greatly affected for the time being due to the continuously falling SHFE/LME price ratio. The abundant copper concentrate inventory allows the smelters to maintain high operating rates, and there have not been any advanced maintenance plans. It is expected that China's copper cathode output will be 865,900 mt in March, an increase of 3.6% month on month and 0.6% year on year.