Jiangxi Copper will shut 300,000 mt of capacity
Posted by: MetalNews in News, tags: China, Companies, Copper, Jiangxi CopperChina’s copper producer, Jiangxi Copper Co Ltd will shut down 43 % of its smelting capacity, becoming the latest smelter to face output disruptions amid power shortages and transport chaos. The smelter would shut down 300,000 mt of its 700,000 mt of smelting capacity within two to three days as China is grappled with its worst power crisis in years.
The shutdown would reduce Jiangxi Copper’s consumption of copper concentrate and could potentially reduce its imports from global miners, such as BHP Billiton. Jiangxi Copper’s shutdown may reduce China’s copper production this year and could spur imports from the world’s top copper consuming nation. The company expected capacity to remain shut until mid-February, which could see lost output of about 12,500 mt, or 2.3 % of its 2007 expected output of 550,000 mt.
Snow has blanketed parts of central and southern China, blocking roads and railways and choking coal shipments, adding pressure on energy shortages that have caused power outages in 17 of China’s 31 provinces and province-status cities.
Jiangxi Copper had reduced transportation of copper and sulphuric acid to clients in other provinces, building stocks at its plant in Guixi in Jiangxi province. The shutdown can slow down the growth of sulphuric acid stocks. If the storage space for sulphuric acid is full they have to stop all production. The company produces 2 million mt annually of sulphuric acid. If sulphuric acid is not collected, it could precipitate an environmental disaster.