China's copper enterprises will likely hold discussions about establishment of virtual mines to buy copper for commercial reserves so as to take advantage of low prices to get more resources, said Wu Yuneng, vice general manager of Jiangxi Copper (600362.SH; 0358.HK).
Last week, the copper futures traded on the London Metal Exchange (LME) fell to a level below 4,500 US dollars/tonne for the first time in six years. Recently, about ten large copper producers in China, including Jiangxi Copper and Tongling Nonferrous Metals Group (000630.SZ), reached an initial agreement to cut their refined copper output in 2016 by 350,000 metric tons (tonnes) in total.
They decided to cut spot supplies of copper by about 30,000 tonnes each month from December this year. Since the beginning of the year, large overseas mining giants including Glencore and Freeport-McMoran Copper & Gold have announced to cut copper metals by 968,000 tonnes, said Wu.
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