Chinese metal output jumps despite smelter restrictions, imports ease during June

BEIJING (Scrap Monster): According to most recent trade statistics released by the Chinese government authorities, the country’s output of major metals have increased during the month of June. The year-to-date production has also jumped higher despite attempts by smelters to cut production. The copper and steel output inched higher, with steel output touching record highs during the month. Meantime, imports of copper and iron ore have declined significantly during the month.

As per data published by the National Bureau of Statistics (NBS), the country’s copper production totaled 686,000 tons during the month of June this year, higher when compared with the production of 680,000 tons recorded during the month prior to it. When matched with the production of 693,000 tons in corresponding month last year, the copper output has declined marginally. The cumulative copper output during the initial six-month period of the year totaled 4.03 million metric tons, rising by almost 9.4% over the previous year. It must be noted that China’s top smelters had earlier agreed to trim output by 350,000 tons in 2016. The new smelter capacity additions are likely to keep the 2016 output at nearly around last year’s figure.

The NBS data also indicates that the lead output gained during the month of June to touch 369,000 tons. The output during the first six months of the year was up by almost 3% to 1.97 million tons. On the other hand, zinc production recorded marginal decline of 0.9% to total 3.03 million tons during Jan-June ’16. However, the monthly output during June this year touched the highest level in one year. The Chinese zinc production totaled 541,000 tons in June. The country’s aluminum output has declined by almost 2% to 15.32 million tonnes during the first six months of the current year.

The crude steel output by the country totaled 69.47 million metric tons in June, rising by 1.7% when matched with the previous year. The production fell just short of the record high of 70.65 million metric tons achieved during March. Meantime, the cumulative crude steel output by the country during the first half of the year was still down marginally by 1.1% at 399.56 million metric tons. The rise in production is primarily attributed to pickup in activity due to rebound in steel prices.

The data from the General Administration of Customs indicate that copper imports during June totaled 420,000 tonnes, dropping by almost 2.3% from the month before. Although imports recorded third straight month of decline, the year-to-date copper imports by the country are still higher by 22% over the previous year. China’s copper imports totaled 2.74 million tonnes during January to June this year. The copper demand from the country’s power and realty sector continued to remain robust during the month. Meantime, the country’s copper ore imports have declined by 5.6% to 1.35 million tonnes during the month.

Even as crude steel output climbed higher, the country’s iron ore imports witnessed sharp drop of nearly 6% from the year-ago levels in June this year. The imports of the steelmaking raw material by the country totaled 81.63 million tonnes during the month. The imports during the first half of the current year totaled 493.7 million tonnes, in accordance with the Customs data.