Customs data showed that China's output of refined copper dropped 6.8% in July from the previous month's record high production as large stockpiles and weak demand prompted smelters to lower production.

Data from the National Bureau of Statistics showed that refined copper output was 483,000 tonnes in July, versus a record 518,000 tonnes in June. The July output was up 0.8% higher from the same month a year ago. Production of aluminium and lead also fell in July from the previous month's record highs in the world's top consumer and producer of the three metals.

Mr Heng Kun chief analyst at Essence Securities said that "In July, demand for industrial metals was not good and prices were weak. Mounting pressure has forced smelters to slow output.''

Mr Chen Dixi analyst at Jinrui Futures, a subsidiary of top smelter Jiangxi Copper said that June's record production increased copper stocks at smelters, prompting them to slow production. Output, however may rise to about 500,000 tonnes in August as smelters expect to see more orders from power cable and wire manufacturers after the government increased its infrastructure investments in June.

He said that Jiangxi Copper plans to open its 400,000 tonne per year capacity plant to produce semi finished products in August or September which will demand for refined metal.

Source - The Standard.com

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