China

The semiconductor shortage is still impacting global vehicle production, including that in China; data for September 2021 show year-on-year declines in both domestic auto production and sales volumes.

Jiangxi Copper, TongLing Nonferrous, China Copper, XiangGuang and Daye Nonferrous are planning to release copper cathode to the overseas LME warehouse market to bring some relief on LME spreads. Meanwhile, China Customs data indicate that, by the end of October, copper imports were running 21% lower year on year.

Owing to China’s strict power consumption policy, both residential and industrial sectors are suffering from power cuts in certain regions. The heavy demands posed by the economic recovery are making the situation even worse.

Risk concerns following recent developments in the real estate market have led to additional caution in housing industry-related copper unit orders. Consumption is weakening as a result of these real estate issues. Energy cost increases are also impacting on copper industry operating rates.

Owing to worldwide travel restrictions triggered by COVID, many regular delegates were unable to attend the CMRA’s annual conference in Wuhan, Hubei, on November 7-9.