The Chinese copper is fading with the collapse of the margin

Written by Amy Lev and Louis Jackson

BEIJING (Reuters) – The main copper fascinations across the top consumers in China began to maintain equipment in March, which are traditionally a request for demand, in an attempt to lose their losses in the deteriorating raw materials that offer margins.

The closure of the plants in what is traditionally is one of the most busy times a year, highlights the amount of pain that causes the concentration of copper in refining, a problem that doubled by excessive melting that sparked fierce competition for raw materials and sent treatment fees below zero.

Honjagaewan Ajloun said in a memorandum that nearly 980,000 metric tons of the ability of son -in -law, or 8 % of China’s total last year, are scheduled to be maintained in March. Three analysts and fuse director told Reuters that this was an extraordinary amount compared to previous years.

Employees in three large fascinations confirmed to Reuters that they started maintenance of equipment in March. Another operator, a non -sharp mineral group, which constituted 13.5 % of the refined Chinese copper product in 2023, began maintenance for a month on some melting equipment in early March, according to two sources.

Production discounts can be sensitive in China, where many fascinations are important contributors to regional economies, but as in many industries, from steel to oil refining, the sector suffers from excessive obtaining the share in the market.

Excessive ability in China, the world’s largest resource for refined minerals used in wires, machinery and new energy technologies, contributes to a global defect in the copper smelting industry.

By closing the equipment for maintenance, fuse hopes to reduce the consumption of copper concentration, reduce the deficiency of the concentration and stop the processing fees from slipping further, the analysts said.

Eight analysts and melted those who spoke with them provided that their identity was not disclosed, given that they were not authorized to speak to the media.

Tongling did not respond to Reuters request to comment.

Sources with knowledge of the issue said that the difficulties of industry lights up at the separation meeting on March 31 for the Chinese screaming team (CSPT), where measures, including production discounts, are discussed.

“There is a great risk of widespread discounts between Chinese mosques this year,” said Patricia Barretto, S& P Global Commodity Insights.

Analysts said that if the Chinese mosques joinly agree to reduce production, it is possible that the refined copper product will decrease this year, which may lead to the import of China to more.