Chinese copper output in June hits all time high-China Mining

Chinese copper output in June hits all time high

(http://www.steelguru.com)
Updated: 2010-07-28 10:37
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Reuters reported that refined copper output in China hit an all time record high in June as smelters profitably worked near full steam, a trend that may slow in the H2 of the year on maintenance for several units and scarce scrap supplies.

China said that refined output rose 6% on the month in June to 422,000 tonnes. The figure was a gain of 26.3% from a year earlier and surpassed the previous record 420,700 tonnes seen last November.

China's refined copper production accounts for about 80% of actual domestic consumption expected for this year, with the remainder met by imports in an economy which showed growth above 10% in the Q2 of the year. However the pace of growth in the H2 of the year for the economy and refined copper production hinges on the Beijing's macro policies, which typically affect smelter material imports.

Ms Grace Qu Beijing based copper consultant for UK headquartered consultant firm CRU said that "China has a copper deficit but it still tries to make it in balance even though it relies on material imports. Unless smelters can not buy enough materials, they are unlikely to cut production."

Ms Qu said that 100,000 tonne per year copper plant in northeastern province of Shandong started production in the Q1. However, refined copper production will likely ease in July on tight supplies and higher prices, of scrap and maintenance at some smelters.

Traders said that supplies of scrap are also falling following a more than 10% decline in metal prices in the past 3 months which discourages scrap selling.

Relating

·METALS-Falling inventories lift copper, but data sours mood
·Copper Pares Losses on China Growth Data
·Copper Output in China Surges to Record as Imports Decline, Analysts Say
·Copper, Aluminum, Zinc Decline as China, U.S. Economic Growth Moderate
·Chinese team tagging copper, nickel-rich areas
·Copper, Aluminum, Zinc Drop on China Property, Growth Concern
·China's Copper Demand May Expand 12%, Wanxiang Says
·Big miners eye copper assets
·China to Buy More Copper Scrap, Europe's Biggest Smelter Says
·Chinese copper miners up, Chile quake fuels concern

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