China's copper supply still abundant even with global copper shortage
Time:Fri, 31 May 2024 15:35:49 +0800
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Amidst global fears of a copper shortage driving prices skyward and sparking a US$49 billion takeover battle, China emerges as an outlier with an abundant supply of the metal. As the world's top producer and consumer of refined copper, China's robust smelting industry maintains near-record production levels despite global raw material shortages.
Rising copper prices incentivize increased processing of scrap metal, ensuring sustained high production levels amidst supply challenges. Despite initial pledges to reduce capacity, China's smelters have not cut production, leading to an oversupply.
Analysts noted that the spike in copper prices has resulted in a rise in the supply of scrap sourced from discarded items like pots, pipes, and wires. Manufacturers are actively transforming this scrap into blister copper, a partially processed state, which is subsequently reintroduced into smelters as an alternative to the presently scarce imported ore.
