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China Sept copper output robust on tight scrap supplies
2012-10-23 / admin

Chinese copper production matched its second-highest level this year in September as tight scrap supplies and favourable export policies encouraged smelters to keep output high, although primary aluminium output dropped from a record high in August.

Metal demand in China, the world's top consumer and producer of copper, aluminium, lead, zinc, nickel and tin, has fallen this year after economic activity slowed in global markets.

But hopes that appetite will rebound in the fourth quarter and early next year on the back more infrastructure spending have encouraged miners and smelters to ramp up production.

Refined copper output rose 4.3 percent from a year ago to 511,000 tonnes in September, unchanged from August.

"Chinese refined copper output has remained at a high level this year partly due to the tightness of copper scrap, and partly due to expectations of downstream demand lifting in the fourth quarter on more infrastructure spending and further monetary easing by Beijing," said CIFCO Futures analyst Zhou Jie.

"Also, now that a lot of smelters can export their output cheaply under the tolling tax cut, they are inclined to produce more."

China's copper smelters are hoping to increase refined copper exports following a tax adjustment that has reduced their costs to export.

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