In April 2015 the level of the smelting of refined copper in China has reached 607 000 tonnes. At the same time the indicators relative to March fell by 4.4%, reaching its lowest level since April last year. The results of the current month can be even lower, given the arrest of some metallurgical plants for repairs. Jinchuan Group Company has suspended the production processes at the plant Fangchenggang. Repair services will last up to 32 days. The annual production capacity is 400 000 tons of copper. The next maintenance Xiangguang plant, also focused on smelting copper. Approximately work will begin either in late May or in June.
The global cost of the red metal in May 2015 reached another record high, amounting to 9550 USD / ton. In the middle of the month there was a positive trend with respect to prices, given the corrections made after the reduction. The main influencing factor was the message on stimulating the economy of China People's Bank of decisions of the country. The key rate has decreased by 25 basic points and amounted to 5.1%. This decline in the last half of the year takes place 3 times. Investors are beginning to express doubts — whether regulation will stimulate demand in the PRC? And in fact, China is the world's leading consumer of industrial metals. Economists are counting on continued easing of monetary policy of the PRC.
Richard Fu said that China will save the additional funding, rather than a decrease rate%. If the country is not provided finances, it makes no sense to take into account the value of the cash loan. Even if the popular belief about the low cost of copper at the companies are economic constraints for its acquisition.
The cost of July futures on the Comex copper has increased by 0.09% to reach 2,9 USD / lb. Price August deliveries of copper on the London Stock Exchange fell by 0.35% to 6365 USD / ton. The cost of aluminum has decreased by 0.53% to the level of 1879 USD / ton. Zinc price was 2305 USD / ton in the fall of 2.12%.
Citigroup representatives greatly reduced the cost of the previous forecasts of non-ferrous metals, taking into account the decrease in demand from China. The average nickel price fell by 21% to 15.555 thousand. USD / ton. Early forecast was 19,750 thousand. USD / ton. The cost of copper has dropped by 4.6%, tin 9.1%, lead by 10% in 2015.