China's largest copper smelter has proposed a production cut of 5% to 10% and decided not to publish copper processing fee (TC) guidance prices for the second quarter, two people familiar with the matter said on Thursday. The decision was taken after a meeting of the China Smelter Purchasing Group (CSPT) in the commercial hub of Shanghai, which has been facing the dual dilemma of raw material supply shortages and a sharp drop in TC prices in the spot market. Copper ore washing plant
Participants told Reuters that large smelters are concerned about the current situation in the spot market, which they believe has become divorced from true market fundamentals.
It is worth noting that the last time CSPT refused to set a guidance price was in the second quarter of 2021. In addition, large smelters made proposals to limit output in January this year, but did not take actual action.
Smelters such as Jiangxi Copper, Jinchuan Group and China Copper have yet to comment on this production reduction proposal and not announcing the TC guidance price.
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