09 OCTOBER 2012Business Recorder
China's metal output up in August, aluminium at record high
Edited by : AL CIRCLE
2 min read
China's production of most base metals rose in August, reversing declines in the previous month, with primary aluminium hitting an all-time monthly high, official data showed on Tuesday, as smelters expect demand to improve in the next 3 or 4 months.
Metal demand in China, the world's top consumer and producer of copper, aluminium, lead, zinc, nickel and tin, has fallen this year after economic activity slowed in global markets.
Chinese smelters are hoping demand will rise in the fourth quarter, usually the peak consuming season, and will benefit from Beijing's increasing investment in infrastructure to boost an economy growing at its slowest pace in three years.
Production of refined copper rose 5.8 percent from the previous month to 511,000 tonnes in August, the second-highest level this year, but was still down 3.4 percent from a year ago.
"The rise in August reflected the fact that base metals smelters have prepared for better demand in September or October," said Yang Xiaoguang, an analyst at Jinrui Futures, a subsidiary of top copper producer Jiangxi Copper Corporation.
Yang said he expected production of most base metals to extend this month's gains.
China has given the green light to 60 infrastructure projects worth more than $150 billion, fuelling investor hopes the world's growth engine may get a lift in the fourth quarter of the year and beyond.
A new 200,000 tonne-a-year copper smelter controlled by Zijin Mining also reached full production in August.
Production of primary aluminium rose 4.7 percent from the previous month to a record 1.75 million tonnes in August. The output increased 12.7 percent from a year earlier.
Some factories that used primary aluminium to make semi-finished products such as profiles have been receiving more orders this month after a fall in orders in July and August, Yang said.
Primary aluminium smelters have continued to open new facilities in the second half after slowing construction in the first half due to weak demand and low prices, industry sources said.
Metal demand in China, the world's top consumer and producer of copper, aluminium, lead, zinc, nickel and tin, has fallen this year after economic activity slowed in global markets.
Chinese smelters are hoping demand will rise in the fourth quarter, usually the peak consuming season, and will benefit from Beijing's increasing investment in infrastructure to boost an economy growing at its slowest pace in three years.
Production of refined copper rose 5.8 percent from the previous month to 511,000 tonnes in August, the second-highest level this year, but was still down 3.4 percent from a year ago.
"The rise in August reflected the fact that base metals smelters have prepared for better demand in September or October," said Yang Xiaoguang, an analyst at Jinrui Futures, a subsidiary of top copper producer Jiangxi Copper Corporation.
Yang said he expected production of most base metals to extend this month's gains.
China has given the green light to 60 infrastructure projects worth more than $150 billion, fuelling investor hopes the world's growth engine may get a lift in the fourth quarter of the year and beyond.
A new 200,000 tonne-a-year copper smelter controlled by Zijin Mining also reached full production in August.
Production of primary aluminium rose 4.7 percent from the previous month to a record 1.75 million tonnes in August. The output increased 12.7 percent from a year earlier.
Some factories that used primary aluminium to make semi-finished products such as profiles have been receiving more orders this month after a fall in orders in July and August, Yang said.
Primary aluminium smelters have continued to open new facilities in the second half after slowing construction in the first half due to weak demand and low prices, industry sources said.
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