Yantai Penghui was forced to close its operation in Shandong province in December due to cash flow problems, being unable to obtain letters of credit for concentrate imports. The smelter and associated refinery are of medium size, with a production of approximately 40,000t/y of blister and 100,000t/y of cathode. Their closure will have only a limited impact on the concentrates market, but the exposure of its unhealthy financial situation has alerted market participants to the risks that the Chinese copper sector, particularly in Shandong province, currently faces.
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