- Write by:
-
Wednesday, March 27, 2024 - 22:55:49
-
62 Visit
-
Print
Jiangxi Copper Co., China’s largest producer, said it expects prices to rise in the second half once the Federal Reserve cuts interest rates, while pledging to maintain double-digit growth in output despite calls to rein in production.
Chinese smelters, including Jiangxi, said earlier this month they would control capacity in response to a tightening in global concentrate supplies following a slew of cutbacks at major mines. That has pushed the industry into cut-throat competition as processing fees on the spot market have fallen to near nothing.
Still, shrinking margins haven’t deterred Jiangxi, which plans to increase refined copper output this year by 11% to 2.32 million tons, according to its earnings report on Wednesday. It follows a 14% increase in 2023, although the smelter said the target could be adjusted based on market conditions, while flagging the likelihood of production cuts at some of its peers who rely more on the spot market.
China’s smelters are meeting again in Shanghai on Thursday to discuss the market outlook and possible output cuts.
Copper’s rally
Copper rallied to an 11-month high earlier this month after investors honed in on the supply risks at mines and smelters, and a general improvement in sentiment toward global manufacturing activities. Prices are expected to trade in a narrow range in the first half, Jiangxi said, before breaking higher as US monetary policy eases.
The copper market should remain in a tight balance this year, it said, as supply constricts and consumption increases steadily, led by renewable energy demand.
There are no signs so far of large-scale production cuts in China’s smelting industry, the world’s largest. Term fees for concentrate are still profitable, while provincial governments need to meet China’s ambitious growth goals and aren’t keen on shrinking the contribution from local industries.
Copper rose 0.4% to $8,881 a ton on the London Metal Exchange as of 10:47 a.m. in Shanghai. Prices hit $9,164.50 on March 18, the highest since last April.
Short Link:
https://www.miningnews.ir/En/News/628187
Copper futures in New York rallied to a record high after a short squeeze that’s prompted a scramble to divert metal in ...
China’s CMOC Group Ltd. is being accused by a top US official of using “predatory” tactics to depress prices of a key ...
A Native American group said on Tuesday it will take its fight against Rio Tinto’s proposed Arizona copper mine to the ...
Teck Resources Ltd expects to generate annual earnings before interest, depreciation, tax and amortization (EBITDA) of ...
The state-run Chilean Copper Commission (Cochilco) will soon revise its copper price outlook, which will be considerably ...
Chilean mining giant Codelco is still working to meet its estimated output for the second quarter, CEO Ruben Alvarado ...
Truck drivers in Chile staged protests Monday in the mineral-rich north of the country and around the capital Santiago, ...
Democratic Republic of Congo’s government has lifted a suspension order on a Congolese copper and cobalt operation ...
Peru’s copper production came in essentially flat for March at about 219,000 metric tons, government data showed on ...
No comments have been posted yet ...