Chinalco’s Copper Processor Says Orders Slumped 20%
Chinalco Luoyang Copper Co., the biggest processor of the metal for parent Aluminum Corp. of China, said orders fell 20 percent last quarter as the economy grew at the slowest pace in five years.
The decline represented a drop in monthly production to 7,000 metric tons in the third quarter, from 9,000 to 9,500 tons in the first half, said an executive who declined to be identified because he’s not the official spokesman.
Copper futures have tumbled 47 percent this year in Shanghai as the global credit crisis deepened and consumption in the world’s biggest copper user slowed. Tongling Nonferrous Metals Group Co., China’s biggest copper smelter, and Yunnan Copper Industry Co. cut production last month, said research firm Beijing Antaike Information Development Co.
“The implication for refined copper demand is bad as even processors who have orders are reluctant to buy amid the remorseless fall in prices,” Zhao Kai, an analyst at Jinrui Futures Co. said by phone from Shenzhen. “The slowdown at copper rod and tube manufacturers could be more as the two sectors have more excessive capacity than copper sheet, which Chinalco Luoyang makes.”
Sales to the U.S., Canada and Southeast Asia have also declined, Luoyang Copper’s executive said. Chinalco Luoyang buys copper metal to process into products that are then used used in generators, phone wires and appliances.
Tags: aluminum, Chinalco, CopperPages: 1 2
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