SMM Cu Survey: High Operating Rates Remain at Domestic Copper Smelters

SHANGHAI, Mar. 22 (SMM) -- A recent SMM survey of 20 major medium and large-size copper smelters (total capacity: 3.845 million mt) revealed the following insights:

1) Operating Rates Remain High
According to the survey, average operating rates at the 20 copper smelters was 87.96% in March, up from 87.0% in January.  All large copper smelters maintained high operating rates with the exception of one producer.  Operating rates at medium-size producers (annual capacity of 100-300/mt) experienced slight declines.  The copper producers surveyed told SMM that existing copper concentrate prices remain high, but operating rates have been steadily rising since Chinese New Year in preparation for the traditional high demand period during 2Q.

2) Scrap Copper Supply Tightens, Refined Copper Inventories Stable
According to the survey, smelters say recent scrap copper supply has been tight and prices higher.  Some smaller-size secondary copper producers say they were operating at losses due to the higher scrap copper prices and were facing greater cost pressures compared with larger producers.  Refined copper inventories were flat at January levels, and most producers were maintaining normal inventory levels.

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