SHANGHAI, Oct 12 (SMM) - China copper cathode output stood at 909,000 mt in September, up 6.12% month-on-month and 13.21% year-on-year.
The output rose in the month partly because some smelters resumed normal production from maintenance and power rationing. In addition, some smelters further ramped up the production to make up for the output cuts earlier. Meanwhile, only a few smelters newly commenced overhaul, bringing little impact on overall production. The new capacities owned by a smelter in Zhejiang reached full production in September. However, it is reported by some smelters that the shortage of spot blister copper has prevented them from raising the production or even resulted in production cuts. Meanwhile, there were other negative factors like pandemic in Jiangxi, and heavy rainfalls in Shandong that led to power outrage, but the impact was minimal.
Entering the fourth quarter, most smelters maintain high production schedules amid sufficient supply of copper concentrate, and some have started to fulfil their annual production guidance and postponed the original maintenance plans. Based on the current production plans, the overall output will edge up further MoM in October despite some maintenance in Shandong and Fujian. Moreover, a smelter in Shandong began to resume the production in mid-September, and will hike the operating rates further in October. China copper cathode output is estimated at 936,600 mt in October, up 3.04% MoM and 18.65% YoY based on the current production schedules.
