China copper producers to cut 85,000 MT output '02

摘要

China's seven largest copper producers have jointly decided to cut their copper cathode output by a combined 85,000 metric tons this year due to dismal copper prices and tight supply of copper concentrates, an official at the China Copper Development Center said. The companies held a meeting in Beijing Wednesday, at which they reached the decision, the official said. Yuannan Copper Co. and Jiangxi Copper Co. will cut 20,000 tons of copper cathodes respectively, according to Wang Xinjiang, secretary to the chairman of the centre and director of the Information Department of Tongling Nonferrous Metals Group Inc. Tongling Nonferrous Metals (Group) Inc., Daye Non-ferrous Metals Co., Luoyang Copper (Group) Co. and Baiyin Non-ferrous Metals Co. will reduce their production by 10,000 tons each. Huludao Zinc Industry Co., the country's leading zinc producer, which also has interests in the copper business, agreed to reduce its copper output by 5,000 tons. "A total of 12 copper producers jointly held this meeting in Beijing Aug. 28, discussing the countermeasures against the weak market and supply tightness," the official said. Also, with the closure of small smelters, around 30,000 tons of copper output has been eliminated as well, bringing the total output reduction for the year to about 115,000 tons. Currently, copper prices in the spot market are quoted around 14,950-15,020 yuan [1 dollar = CNY 8.28] a ton, down from around CNY 16,000/ton earlier this year. Copper futures traders said current domestic copper prices are "definitely" lower than producers' cost. Meanwhile, supply of copper ores are also tight as many overseas miners that Chinese copper smelters source their supplies from have announced plans to reduce their copper concentrate output this year.