China Copper Kunming Copper resumes copper rod production
2021-01-11 10:06:55 [Print]
BEIJING (Asian Metal) 11 Jan 21 - China Copper (Kunming) Copper Co., Ltd., the biggest copper rod producer in southwestern China, resumed production on January 5 and expects to produce about 13,000t of copper rod this month, a source from the company told Asian Metal.
"We suspended copper rod production from late last month to ease inventory pressure amid the sluggish end-user demand. We resumed normal production on January 5 and expect to produce about 13,000t this month, down by about 3,000t from the previous month," said the source, adding that the downstream consumption of copper rod remained sluggish after the New Year's Day holiday and they now still hold inventory of as high as nearly 4,000t, with stocks increasing by 100-200t per day, so they might suspend production again in late January due to the inventory problem.
With an annual production capacity of 220,000t of copper rod, the company reported total production of 160,000t in 2019 and around 180,000t in 2020. Mainly using copper cathode 99.99%min produced by smelters owned by China Copper as the feedstock, the company sells most of its product to wire and cable producers in Sichuan and Chongqing apart from Yunnan.
Mainstream TCs for copper rod Ф8mm were RMB450-650/t (USD69.48-100/t) EXW in Chinese market last Friday, up slightly by about RMB50/t (USD7.72/t) from those before the New Year's Day holiday.
"We suspended copper rod production from late last month to ease inventory pressure amid the sluggish end-user demand. We resumed normal production on January 5 and expect to produce about 13,000t this month, down by about 3,000t from the previous month," said the source, adding that the downstream consumption of copper rod remained sluggish after the New Year's Day holiday and they now still hold inventory of as high as nearly 4,000t, with stocks increasing by 100-200t per day, so they might suspend production again in late January due to the inventory problem.
With an annual production capacity of 220,000t of copper rod, the company reported total production of 160,000t in 2019 and around 180,000t in 2020. Mainly using copper cathode 99.99%min produced by smelters owned by China Copper as the feedstock, the company sells most of its product to wire and cable producers in Sichuan and Chongqing apart from Yunnan.
Mainstream TCs for copper rod Ф8mm were RMB450-650/t (USD69.48-100/t) EXW in Chinese market last Friday, up slightly by about RMB50/t (USD7.72/t) from those before the New Year's Day holiday.
Copper Rod TC Ф8mm EXW China
Unit:RMB/mt
China's copper rod producers' inventory statistics by province by month
Unit: mt
