Jiangxi Copper Profit Falls as Slowing China Growth Curbs DemandBloomberg News
Jiangxi Copper Co., China’s largest smelter of the metal, reported an 8 percent drop in third-quarter profit as a slowing economy curbed demand.
Net income declined to 1.13 billion yuan ($180 million), or 0.32 yuan a share, in the three months ended Sept. 30 from 1.23 billion yuan, or 0.35 yuan, a year earlier, Jiangxi Copper said today in a statement. Sales rose 24 percent to 54.5 billion yuan.
Copper fell 8.6 percent this year on the London Metal Exchange. China is the largest buyer of the metal. Gross domestic product in the country rose 7.3 percent in the third quarter from a year earlier, the slowest expansion since the first quarter of 2009.
Global mined copper production will increase 6.1 percent to 19.58 million tons next year compared with 2.9 percent growth this year as producers from Chile to Peru boost output, according to Macquarie Group Ltd. Refined copper supply will climb 5.5 percent next year to 23.2 million tons, while demand will advance 4.1 percent to 22.7 million tons, according to Macquarie.
Jiangxi Copper rose 1.6 percent to close at HK$12.88 today in Hong Kong before the earnings announcement. The stock has declined 10 percent in the past year, compared with the 3.1 percent gain in the benchmark Hang Seng Index.
Jiangxi Copper supplies 19 percent of the concentrates it needs from its own mines, exposing it the most to falling metal prices among Chinese smelters, according to Bloomberg Intelligence.
Average copper prices in London were 1.7 percent lower in the third quarter from a year earlier. The metal for three-month delivery increased 0.4 percent to $6,754 a ton as of 17:18 a.m. Shanghai time.
— With assistance by Helen Yuan