Output of Copper Cathode Stood at 827,300 mt in April in China

SHANGHAI, May 9 (SMM) - Overall, the output of domestic smelters in April was basically in line with market expectations, but some smelters moved the maintenance plan to May due to some obstacles to the maintenance of equipment. Two smelters in Shandong also have not resumed production in May. In terms of the raw material, the news of the resumption of production of a smelter in Shandong has significantly slowed down the growth rate of TC, which rose rapidly in the early stage. As the copper concentrate inventory of the smelters and the port inventory was sufficient, the market spot demand was not strong, so the supply and demand of the mine will gradually return to balance. At the same time, the rising sulphuric acid prices showed a downward trend due to the off-season of downstream chemical fertilizer demand. But the sulphuric acid prices were still at the high level of 700-900 yuan/mt as a whole, driven by high profits, Except for maintenance, the smelters basically maintained full capacity.
In terms of blister copper, the shortage in some areas in the early stage has been effectively alleviated, and the overall supply of the market was stable. However, in the later stage, the TCs of blister copper showed a downward trend under the strong demand of smelters amid the centralized maintenance period in China. According to the smelters’ plans in May this year, domestic smelters have entered the centralized maintenance period, including CChifeng Yuntong Nonferrous Metals Co., Ltd, Southeast Copper, Zijin Copper Co., Ltd, Daye Nonferrous Metals Group, Tongling Jinguan and other smelters have entered the maintenance one after another, while the maintenance of CICC and Fuye Group in the early stage has not ended yet. As a result, it is estimated that the output in May will hit a new low in the year. However, in the follow-up, the output may be at the lowest point in May as two smelters in Shandong will gradually resume production from May to June and the new domestic production capacity will be gradually released in the second half of the year. SMM China copper cathode output is estimated to record 826,500 mt in May, down 1.3% MoM, down 4% YoY.