China’s Copper Output Keeps Surging Even as Strains Mount
- Capacity is being added despite collapse in processing fees
- Smelters are using more scrap metal to replace concentrate
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Chinese copper output is expected to hit another record this year, although the strains on smelters are starting to mount.
The industry has kept adding capacity despite a collapse in processing fees, which are now deeply underwater. The government is scrutinizing the expansion and plans to put limits on new facilities. But plants already commissioned won’t be affected, and that’s likely to drive increased production this year and next.