China`s refined copper output up, aluminium at record
Source: www.chinamining.org Citation: Reuters Date: August 18, 2014
China`s refined copper production rose 1.6 percent month-on-month in July, increasing for the third straight month as smelters expanded capacity. Strong output in the world`s top refined copper producer and consumer could mean end users may cut their demand for imports. Refined copper production stood at 633,518 tonnes in July versus 623,428 tonnes in June, data from the National Bureau of Statistics showed on Thursday.
The July output was up 16.5 percent from a year ago. In the first seven months of 2014, production increased 9.8 percent from the same period last year to 4.25 million tonnes. "More new smelting capacity is set to start production in the second half of the year," said Song Xiaolang, Shenzhen-based analyst at Jinrui Futures.
About 600,000 tonnes of smelting capacity was likely to come onstream between July and December after less than 100,000 tonnes had started in the first half of the year, Song said. Strong treatment and refining charges (TC/RCs) for imports of raw material copper concentrates also have been encouraging Chinese smelters to boost refined metal production, Song said.
TC/RCs are paid to Chinese smelters from foreign sellers to convert concentrates into refined copper and deducted from the smelters` buying prices. Spot clean, standard copper concentrate traded at TC/RCs of about $110 per tonne and 11 cents per pound this week, compared to about $90 and 9 cents in late June, traders said. TC/RCs usually rise when copper concentrate markets are well supplied. Refined copper output may rise further in August although two medium-scale smelters in the north-eastern region of Inner Mongolia were conducting maintenance currently, Song said.
ALUMINIUM, ZINC ON RECORD Production of primary aluminium went up 1.2 percent compared with last month, hitting a second consecutive record as smelters restarted idled capacity. Aluminium production stood at 1.98 million tonnes in July, compared to the previous record of 1.95 million tonnes in June. The July production was up 7.2 percent from a year ago.
In the first seven months, aluminium output increased 7.5 percent to 13.5 million tonnes. Production may rise further due to new capacity. State-backed research firm Antaike expects about 3 million tonnes of aluminium smelting capacity to come onstream in the second half of this year, after about 1.6 million tonnes started up in the first half. China`s refined zinc production also hit a record in July, rising 5.3 percent from a month ago to 515,065 tonnes.
The July production surged 10.3 percent from the same month last year. Strong prices encouraged output, industry sources said. The most-active zinc futures in Shanghai rose more than 6 percent in July. Production of refined lead fell 13.6 percent on-month to 349,609 tonnes in July due to seasonal weak demand. Nickel stood at 31,530 tonnes in July versus 33,288 tonnes in June. Refined tin was at 15,889 tonnes in July versus 17,087 tonnes.
About CHINA MINING
Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: m.balanzskin.com.
