Copper prices soared and anode plate production increased [SMM Analysis]

SHANGHAI, Apr 8 (SMM) - In mid-March 2024, copper prices rose, resulting in a rapid widening of the price spread between copper cathode and copper scrap. According to SMM data, the average monthly price spread between copper cathode and copper scrap in March was 2,007.8 yuan/ton, and that in the first week of April was 2,407.2 yuan/ton.

Affected by prices, the supply of copper scrap in the market increased, while copper rod made from copper scrap continued to show a discounts of more than 600 yuan/ton against SHFE copper. Shortage of copper concentrate and low spot TC led to losses of smelters, and facing the concentrated maintenance period of copper smelters in the second quarter of 2024, the market demand for anode plates has increased. At the same time, without advantage of account period, many copper rod plants using copper scrap as raw material have switched to the production of anode plates.

SMM has sorted out the theoretical annual production capacity of anode plates in various provinces across China through research as follows: (which does not include the part of anode plates as intermediate products, and because the theoretical production capacity of copper rod plants using copper scrap as raw material with anode plate production capacity is the smelting capacity of their equipment, the actual output is expected to be quite different)

In 2024, China's anode plate production capacity will be 3.225 million tons. Jiangxi Province's anode plate production capacity is 1.66 million tons, accounting for 51.47%, Inner Mongolia's is 300,000 tons, accounting for 9.30%; production capacity of Guangxi and Yunnan provinces is 200,000 tons each, accounting for 6.20%.