Daye copper plant in China to close for 3 months after fire, sources say

China Daye Non-Ferrous Metals Mining

16/09/2024 18:08

LONDON/HANOI, Sept 16 (Reuters) - Hong Kong-listed China
Daye Non-Ferrous Metals Mining said on Monday a fire at its
copper facilities in China caused a stoppage, which three
sources with direct knowledge of the matter said would last for
three months.
    China Daye Non-Ferrous Metals Mining Ltd  0661.HK  did not
respond to a Reuters request for comment on Monday on the length
of its shutdown or the cause of the fire.    
    The stoppage could mean the release of copper raw materials
to the market, which has faced unprecedented shortages this
year.  
    The fire at the Daye operations in China's central Hubei
province broke out on Saturday at its sulphuric acid facility,
said the sources, who declined to be named. 
   Sulphuric acid production is an integral part of the copper
smelting process, sales of which contribute to smelters'
revenues. 
   Although primary smelting would be shut, Daye's refinery will
remain in partial operation to produce copper cathodes using
intermediate products like scrap and blister, the sources said. 
   Daye, a subsidiary of China Nonferrous Mining Corp  1258.HK ,
said on Monday it expected to produce 680,000 metric tons of
copper cathode this year after taking account of the impact of
the fire.
    In March, the company said it was targeting output of
870,000 tons of copper cathode.
   Fundamentals along the copper supply chain are increasingly
polarised, with mined copper concentrates facing shortages due
to rapid expansion of global smelting capacity. 
   Meanwhile copper cathodes, a more refined form of copper for
making cables and wires, are facing a surplus due to lacklustre
demand from top buyer China.             

 (Reporting by Julian Luk in London; additional reporting by Mai
Nguyen in Hanoi; Editing by Ros Russell)
 ((julian.luk@thomsonreuters.com; Reuters Messaging:
julian.luk.thomsonreuters.com@reuters.net))