China's Jiangxi Copper H1 profit dips 51.9% y/y on sharp declines in metal prices

Jiangxi Copper Co. reported a 51.9% fall in net profit in the first half due to sharp declines in prices of the red metal.

SHANGHAI (SMM): Jiangxi Copper Co. reported a 51.9% fall in net profit in the first half due to sharp declines in prices of the red metal.

Net profit at China’s largest copper smelter was 1.2 billion yuan ($195 million) or 0.36 yuan per share in the first six months, the company told Shanghai Stock Exchange on Thursday.

“Global copper market is undergoing a switch in supply and demand relationship with new mining capacities being released and Chinese structural adjustment slowing demand growth,” said Jiangxi Copper in its interim report.

Copper prices on London Metal Exchange slumped to a low of $6,602 per tonne from a high of $8,346 per tonne in the period as dollar strengthened on mild US recovery and capital flew out of emerging markets, Jiangxi Copper noted in the report.

In addition, economic stimulus unwinding in the US and weakness in European and Japanese economies ''certainly would suppress copper prices further in the future,’’ it added.

Jiangxi Copper produced 558,800 tonnes of copper cathodes in the first half, 11.7% more than a year ago, it said.

Source: Shanghai Metals Market (SMM)

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