Author Amy LV and Lewis Jackson
Beijing (Reuters) – The main copper topics across the top consumer of China have started maintaining equipment in March, a traditional top demand period, in an attempt to stop losses from the aggravated lack of raw materials who have been waiting for margins, said industrial insiders.
The exclusion of plants in what is traditionally one of the most prominent times of the year emphasizes how much pain the scarcity of copper concentrates causes refinery, a problem that is complex with the melting of excessive capacity that has caused fierce competition for raw materials and sent fees for treatment below zero.
About 980,000 meters of melts, or 8% of the total number of Chinese last year, was set up in March, Hongyuan Futures said in a note. Three analysts and Topionica manager told Reuters that it was an unusually high amount compared to the previous year.
The staff on three large topics confirmed to Reuters that they started maintaining equipment in March. Another operator, a group of non -inferior metal, which made up 13.5% of the Chinese refined copper outlet in 2023, began several months of maintenance on some melting equipment in early March, according to two sources.
The reduction of production can be sensitive in China, where many are important contributions to regional economies, but as in many industries, from steel to refinement of oil, the sector is tortured due to excessive capacity because the operators of the persecution market share.
Too much capacity in China, the world’s largest refined metal supplier used in wiring, machines and new energy technologies, contributes to global imbalance in the copper melting industry.
By turning off maintenance equipment, topicals hope to reduce the consumption of copper concentrates, facilitate the lack of concentrates and stop the processing fees even more skating, analysts said.
Eight analysts and topics who talked did so, provided anonymity, since they are not authorized to talk to the media.
Tengling did not respond to Reuters’ comment request.
Difficulty in the industry placed in the center of attention at a three -month meeting team to buy heat (CSPT) in March 31 March 31, where they will discuss measures that include reducing production, sources with knowledge of the matter said.
“This year, there is a significant risk of great reduction in production from Chinese heat,” said Patricia Barreto, a senior analyst from S&P Global Commters Insights.
If the Chinese solutions jointly agree with the reduction of production, refined copper exit this year is likely to fall, which could lead to more importance to China, analysts said.
