China's Refined Copper Output to Drop for Second Month on Raw Material Shortage

China's refined copper output is expected to fall for a second consecutive month in August, as a persistent shortage of raw materials pressures smelters to reduce operations, according to a report Wednesday from state-backed research firm Antaike.

Production Figures Decline

Antaike forecasts that refined copper production from surveyed companies will total 1.05 million metric tons in August. This figure, representing firms that account for 81.97% of China's total capacity, marks a 2.83% decline from the same period last year.

The expected drop follows a similar trend in July, when output is estimated to have fallen 3.18% year-on-year to approximately 1.05 million tons. This was also below Antaike's earlier projection of 1.07 million tons for the month.

Ad

Smelters Face Raw Material Crunch

The primary driver behind the production cutbacks is an ongoing shortage of raw materials. This has compelled Chinese smelters to lower their capacity utilization rates, directly impacting the output of the industrial metal.

As the world's largest producer and consumer of copper, fluctuations in China's output can have significant implications for global supply-demand balances. Copper is a critical input for major economic sectors, including power generation, construction, and manufacturing, making its production levels a key indicator of industrial activity.