China's copper and aluminum production in October increased to a record high
China, according to Hong Kong on November 11th October refined copper production was up 2.9% last month, for the second straight month posted a record level, because of the raw material supply and new capacity increase. China's aluminium production also record in October.
China's national bureau of statistics (NBS) 11, according to data released in October China's refined copper output of 637958 tons, than September hit a record 620086 tons. Copper production was in October 2012 in October increased by 22.9%.
China is the world's largest refined copper producer and consumer. October domestic supply copper production record or means that the next few weeks will still enough, to crack down on domestic prices and spot copper imports is not attractive.
China's state-owned research institutions - chief Yang Changhua a copper analyst at antaike, said: "concentrate raw material supply is adequate, imports of more than 1 million tons, in September to support the strong output in October."
New production capacity and over the past few months has been gradually to increase output.
Antaike had expected, in the third quarter, at least 200000 tons of production capacity to start producing new smelting capacity will increase 570000 tons in 2013 China and more than 1 million tonnes of refining capacity.
A source said the strong copper concentrate processing and refining fee (TC/RCs) have encouraged smelters to full capacity operation.
Copper processing fee is miners and traders to pay to the smelter, the cost of the copper concentrate processing into refined copper. As a result of the copper concentrate business charge copper smelting enterprises copper concentrate prices on the London metal exchange (LME) benchmark three-month copper futures price minus the process cost calculation, therefore, reduce the processing means of copper smelting enterprises cost increase and profit decrease, on the other hand, means that the cost reduction and profit increase.
Traders said that part of a large copper smelter smelters have increase refined copper sales on the spot market, because of financial strain is expected before the end of the domestic market.
The demand of the northern provinces of China has now signs of slowing down. The traders said the customer from China's xinjiang province have canceled December copper purchasing contract, reduce caused by the severe winter outdoor activities, it may also be cancelled in January of the copper purchasing contract, according to data, the first ten months of 2013, China's refined copper production increased by 13.67%, to 5579689 tons.
China's aluminium production was increased 5% last month in October, to a record 1951134 tons, and than in August 2013, a record 1863433 tons.
China's aluminium production in October a 11.87% increase in October 2012.
Due to decline in domestic prices, the high cost of smelter has limited output. So far this year, prices have dropped by about 6%.
However, traders said, low cost of northern and northwestern provinces new capacity to increase production.
Xinjiang province in October to China's largest aluminum production province, the province aluminum production is 285965 tons; Followed by for henan province, the province aluminum production in October of 284665 tons.
October 1, 2013, China's aluminium production is 18161163 tons, compared with the same period in 2012 increased by 9.2%.