Jiangxi copper forecasts to produce 1.73mn mt copper cathode in 2021, which is 5pc higher than the company’s production in 2020, according to the company’s earnings report.
In 2020, the leading China-based copper producer’s consolidated operating income rose to CNY318.56bn ($48.48bn), up by 32.5pc from 2019 but inventory write-offs reduced net income to CNY2.32bn ($353mn), down by 5.92 from the prior year.
Outlook
China’s economic growth rate is expected to rebound greatly from its low base in 2020, and the overall economic growth is expected to drive global recovery, believes the company.
In 2021, prices of non-ferrous metals are expected to be supported by the US government stimulus of $1.9 trillion, which is likely to create a supply and demand mismatch driving commodity prices. Large-scale vaccine drive is expected to boost manufacturing activities, globally, leading to increased consumption of non-ferrous metals including copper in the short to medium term. China’s focus on reaching the carbon emission peak and reducing emission is expected to support demand for copper in the infrastructure, photovoltaics, energy storage, new energy automobile and wind power facilities. This is expected to keep copper prices elevated.
The company will implement China’s 14th five-year plan and focus on strengthening two new industries; new materials and equipment production, along with an eye on mergers and acquisitions in the high-end copper processing and new materials space.
Jiangxi copper will complete the construction of 180,000mt annual capacity copper cathode smelter at JCC Guoxing and the daily 10,000mt output project of Wushan mine Phase III. The company will accelerate the realization of the production at daily 8,000mt in the wells of Yinshan, annual 100,000mt copper cathode in JCC Hongyuan and an annual 15,000mt lithium battery Cu foil unit in the Copper Company and Jiangxi Wantong. It will also focus on starting the construction of the slag beneficiation project in Mexico in Q2; and the construction of the main unit at the Kazakhstan tungsten project in May.
($1 = CNY6.57)