Chinese copper output in July drops on summer maintenance

Friday, 13 Aug 2010
Bloomberg reported that copper output in China, the largest consumer, decreased in July from a record a month earlier as some smelters suspended production for maintenance during the summer lull in demand.

According to the statistics bureau, output of the refined metal declined 5.7% to 398,000 tonnes from 422,000 tonnes in June. The bureau said that production in July gained 16% from a year earlier.

Some smelters reduce output between July and August as demand for the metal used in pipes, tubes and wires usually shrinks. Industrial output rose the least in 11 months in July as the government cracked down on real estate speculation, curbed credit and closed factories, adding to signs that a slowdown in the world’s third biggest economy is deepening.

Mr Wu Jianjian an analyst at Yong’an Futures Co from Hangzhou said that “The output in July and August usually falls on the lower side of the range. This is quite a normal thing, especially considering the high level in June.”

Statistics bureau data showed that copper and lead concentrate production fell 6% and 9% from June, respectively to 104,000 tonnes and 221,000 tonnes. Aluminum output dropped 3.8% to 1.4 million tones.

Mr Grace Qu a consultant with the London-based research firm CRU International Ltd said that “About five or six smelters started their equipment maintenance in late June in view of the seasonally weak consumption and a relatively tight ore and scrap markets.” He added that output of refined copper in August may be similar to July.