China Copper Smelters Move Closer to Possible 10% Production Cut
- Proposal comes after spot fees plunge to near zero levels
- Doubts over whether output cut will be fully implemented
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Chinese smelters, which produce over half the world’s supply of refined copper, moved a step closer to implementing a joint output cut after tightening ore supplies drove processing fees to near zero.
Thirteen major smelters proposed a reduction of 5% to 10% in planned output this year, according to people with knowledge of the matter, who asked not to be identified because the discussions are private. The proposal was made at the quarterly meeting of the Copper Smelters Purchasing Team, known as CSPT, in Shanghai on Thursday, the people said.