The overall nonferrous metal prices may stop falling with the rise in production costs and some enterprises' decision to cut production, a survey on nonferrous metal spot market disclosed.

    Nonferrous metal production would likely slide upon consensus among producers. In mid-July, 20 heavyweight electrolytic aluminum producers reached an agreement on cutting production by 5~10 percent within a month, and 27 lead and zinc producers also announced slashing production in August.

    The production is curbed by recent power limit, in which energy-guzzling enterprises such as nonferrous metal enterprises are not allowed to go into full operation.

    Electricity price hike by 0.25 yuan since July has pushed up production cost, further bolstering nonferrous metal price.

    But the price rise momentum will be limited because the market oversupply would not be eased despite of the short-term production cut. Besides, nonferrous metal price on the international market still keeps falling. The international inventory in July in particular doubled that in May to record-high 136,725 tons.

    Due to a dull season in July, LME copper futures with maturity of three months plunged from 8,900 U.S. dollars/ton to less than 8,000 dollars, and the aluminum price dropped below 3,000 dollars/ton.

    Following is a table showing prices of major nonferrous metals in China's large and middle-sized cities in July.