Refined copper production in August decreased due to power supply issue. Mysteel adjusted August China refined copper output to 888.6kt from 918.6kt after power tightness happened.
Data Source: Mysteel
Mysteel learnt that August power supply tightness mainly concentrated in Hubei, Yunnan, Anhui and Zhejiang provinces. There are large copper refineries located in these districts. Power supply stability is important in the progress of refining. Production was hurt this August because the high temperature caused power demand surged significantly and industrial power supply sacrificed to satisfy daily life. Besides, refineries copper delivery in Jiangxi province was impacted due to COVID-19 control, which also dragged down refined copper output.
Power supply tightness eased in end of August and Mysteel expects that refineries production will recover in September. However, some producers reflected that it is hard for them to fully reimburse output loss because utilization rate remained high level, thus limited space to increase. Second, blister supply is tight and high-quality blister is in shortage. Third, COVID-19 control measures also create difficulties to increase production. Mysteel expects China refined copper production in Sept will reach Jul level to break through 900kt.
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