[Cu] SMM Survey - Operating Rates at Copper Smelters

SHANGHAI, Aug. 25 (SMM) -- A recent CBI survey of 24 major domestic copper smelters (total capacity: 4.243 million mt/yr) revealed the following insights:

    1) Operating Rates

    According to the survey, the average operating rate at the 24 copper smelters was 81.5% during August, up 8.1% MoM, and up 3.1% YoY, with significant increases in operating rates at large smelters. Large copper smelters maximized output recently in order to meet annual production goals, following completion of maintenance and now that raw material supply shortages have eased. However, other smelters say they will reduce output gradually since processing profits have plunged due to falling TC/RC and the low SHFE/LME copper price ratio.

    2) Inventories

    Scrap copper imports experienced significant increases during July, helping ease domestic scrap copper shortages. Copper concentrate inventories have gradually recovered since May, and recent TC/RC of spot copper concentrate has fallen to USD 10-20/mt/ Cents 1-2/lbs due to increases in purchasing volumes.

    Domestic output of refined copper grew slightly, but refined copper inventories at smelters were up slightly due cautious purchasing by downstream manufacturers in light of higher copper prices.

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