China's production of most base metals fell in November due to reduced demand and low domestic prices with refined copper hitting its lowest level in 6 months.
The lower industrial metals output was in line with China's overall industrial output growth which hit its slowest pace in more than two years in November as economic conditions deteriorated.
Data from the National Bureau of Statistics showed that refined copper production fell 4.5% on the month to 448,000 tonnes in November the lowest level since May 2011. However, output rose 9.3% from a year earlier because smelters expanded capacity. In the January to November period, output rose 16.3% on the year to 4.778 million tonnes.
Mr Fu Bin analyst at Jinrui Futures said that "Falls in base metals production were not a surprise since prices were low last month. Spot copper prices CU 1-CCNMM in China fell more than 7% from end October to late November.
He said that copper producers in China usually conducted maintenances in the Q4 slowing production. Supply of raw material scrap was tight in the domestic market, cutting output from producers that used scrap as the main raw material. Supply of raw material copper concentrate to China had also fallen after strikes cut production in South America and Indonesia.
Mr Fu said that smelters had expected domestic demand to fall in December due to a seasonal slowdown and adjusted their production rates last month. Refined copper production was expected to decline in December from November.
He said that refined lead was the only base metal that rose in November as Beijing's crackdown on acid lead battery manufacturing plants was ending, allowing some battery plants to resume operations.
The lower industrial metals output was in line with China's overall industrial output growth which hit its slowest pace in more than two years in November as economic conditions deteriorated.
Data from the National Bureau of Statistics showed that refined copper production fell 4.5% on the month to 448,000 tonnes in November the lowest level since May 2011. However, output rose 9.3% from a year earlier because smelters expanded capacity. In the January to November period, output rose 16.3% on the year to 4.778 million tonnes.
Mr Fu Bin analyst at Jinrui Futures said that "Falls in base metals production were not a surprise since prices were low last month. Spot copper prices CU 1-CCNMM in China fell more than 7% from end October to late November.
He said that copper producers in China usually conducted maintenances in the Q4 slowing production. Supply of raw material scrap was tight in the domestic market, cutting output from producers that used scrap as the main raw material. Supply of raw material copper concentrate to China had also fallen after strikes cut production in South America and Indonesia.
Mr Fu said that smelters had expected domestic demand to fall in December due to a seasonal slowdown and adjusted their production rates last month. Refined copper production was expected to decline in December from November.
He said that refined lead was the only base metal that rose in November as Beijing's crackdown on acid lead battery manufacturing plants was ending, allowing some battery plants to resume operations.
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