China's August copper output to fall as acute feedstocks shortage bites, Antaike says
China's refined copper output in August will post an annual decline for a second straight month, constrained by an acute shortage of feedstocks, State-backed research house Antaike said on Wednesday.
Output of the red metal, used in power, construction and manufacturing, among surveyed companies that represent 81.97% of China's total capacity is forecast at 1.05-million tons in August, down 2.83% from the year before, according to Antaike.
That came after July's output is estimated to slide by 3.18% year-on-year to around 1.05-million tons, missing an earlier forecast of 1.07-million tons, Antaike said.
Persistent supply tightness in raw materials propelled smelters to lower their capacity utilisation rate.
"China's copper concentrate market is experiencing one of its most severe supply shortages in recent years," analysts at consultancy Mysteel said in a note last week.
Processing fees that miners typically pay smelters to turn concentrate into refined metal have stayed negative for 19 months, reflecting a prolonged tightness in global concentrate supply.
The fees for imported concentrate stood at a record-breaking low of minus $175.7 a ton on August 7, versus minus $38.4 a ton over the same period a year ago, data from information provider Argus showed.
Tightening regulation on domestic tax invoice meanwhile continued to curb supply of value added tax-compliant recycling copper, also a feedstock for smelters, said Mysteel analysts.
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