Metals Update: China's Increasing Metals Output Signals Optimism

Metals – China's metals output edges higher

Copper along with other base metals edged higher yesterday as the USD eased, while the market remained optimistic about a post-summer pick-up in metals demand in China. Better-than-expected Chinese credit data, signalling stabilization in household demand for mortgages, also boosted sentiment.

The percentage of Russian-origin aluminium on-warrant in LME warehouses was unchanged at the end of August, from the end of July, at 81%, according to the latest data from the exchange. Russian aluminium on-warrant in exchange warehouses totalled 183,650 tonnes.

The latest SMM survey shows that China’s copper cathode production rose 15.5% YoY and 6.8% MoM to 989kt in August as some domestic smelters resumed production after completing maintenance. Cumulatively, copper output increased 11.5% YoY to 7.5mt over the first eight months of the year.

Among other metals, Chinese primary aluminium production rose 3.9% YoY to 3.6mt last month, while year-to-date output rose 2.8% YoY to 27.3mt in Jan’23-Aug’23.