Jiangxi Copper Co, China's second-largest producer of the metal,
says most mine output has resumed after cutbacks because of
snowstorms, while its smelter remains below full capacity because
of a lack of raw materials.
About 80 percent of output capacity at the company's mines has
resumed, Board Secretary Pan Qifang said yesterday. Smelter
operations have yet to be fully restored because of "transportation
problems," Pan said.
Supply problems have hampered the company since February 2 as
China was buffeted by the worst snowstorms in 50 years. Apart from
the Yongping mine, Jiangxi Copper's other mines were either closed
or operated at about half capacity, the company said last week. The
smelter's output dropped to 60 to 70 percent of normal capacity,
Bloomberg News reported.
Copper on the London Metal Exchange has risen for five days on
concern supply will lag demand on the disruptions, which cut
stockpiles. Inventories monitored by the exchange fell to 164,125
tons yesterday, the lowest in more than three months.
"Jiangxi Copper will probably benefit from the prevailing higher
copper price as demand outpaces supply," said Zhang Xi, an analyst
at UOB-Kay Hian Ltd. The impact of the snowstorm "is mainly on its
smelting capacity," he said.
(Shanghai Daily February 13, 2008)
