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

China's refined copper output is set to decline for the second consecutive month in August as a persistent shortage of raw materials forces smelters to reduce operating rates, according to a report from state-backed research house Antaike on Wednesday.

The projected drop in production from the world's largest consumer and producer of the metal could signal tighter supply conditions for copper, which is widely used in the power, construction, and manufacturing sectors.

Production Figures Decline

Antaike forecasts that China's refined copper output in August will be 1.05 million tonnes, a decrease of 2.83% compared to the same month last year. The projection is based on a survey of companies that represent 81.97% of the country's total production capacity.

This follows an estimated year-over-year decline of 3.18% in July, when production reached approximately 1.05 million tonnes. That figure was lower than a previous forecast of 1.07 million tonnes, Antaike noted.

Ad

Smelters Face Supply Squeeze

The back-to-back monthly declines are attributed to an ongoing scarcity of raw materials for Chinese smelters. In response to the feedstock shortage, various smelters have reportedly lowered their capacity utilization rates, directly impacting overall output.

The tightening supply of copper concentrate has been a persistent issue, putting pressure on the processing margins for smelters and leading to production curtailments. This trend is closely watched by global markets as an indicator of the health of industrial supply chains.