Latest news with #CraigLang
The Star
3 days ago
- Business
- The Star
China's copper boom under threat as miners test bargaining power
This photo taken on May 17, 2025 shows the Dexing Copper Mine, an open-pit copper mine in Dexing, in China's central Jiangxi province. China's refined copper output is set to rise ten per cent in the first half of this year and nearly five per cent for the full year. - AFP BEIJING: The unrelenting expansion of Chinese copper processing capacity over the past few years has now become a global headache, as smelters scramble to secure the ore they need to produce the vital industrial metal. Output in the world's top producer of the refined metal has ballooned to a record this year, even in the face of trade tensions wars that are clouding the outlook for demand. The resulting competition has handed bargaining power to some of the world's largest miners. Copper treatment charges, typically a key earner for processors, have plunged deep below zero on the spot market. Chilean miner Antofagasta Plc has proposed negative charges for contracted supplies to smelters in the second half. The fraught situation for smelters worldwide is fueling expectations of cuts - Glencore Plc shut a facility in the Philippines in February. It's also focusing market attention on the surprising resilience of China's output, and raising the question of how long that can last. Analysts and industry executives say China's output is more resistant to financial pressures because it is now dominated by state-owned producers and by relatively large, efficient and low-cost smelters. Three major new plants were opened just last year, more than offsetting the pain felt by more modest operations. But there's also a still-substantial segment of China's market that is made up of smaller, privately owned smelters with more exposure to a tightening spot market. CRU Group says those plants account for about a quarter of the country's output. "Even if you have very deep pockets and are willing to operate at a loss, at the end of the day you might have to cut production because you simply cannot get the copper concentrate,' said Craig Lang, principal analyst at CRU Group. The stakes are high for the global copper smelting industry. With all high-cost facilities facing losses, every tonne that resists financial pressure in China means more pain for those elsewhere. Spot treatment charges to process concentrate fell to negative levels in December, and reached minus-$60 a tonne last month. The fees are deducted from the cost of concentrate and ordinarily make up a large chunk of smelter revenues. Term supplies are now threatening to slide into negative territory too, meaning smelters are effectively paying more for copper ore than the value of the metal contained in it. In February, when fees were less punitive than they are now, Glencore Plc Chief Executive Officer Gary Nagle said he wouldn't keep open loss-making copper plants. The company mothballed a smelter in the Philippines and is cutting costs at plants in Canada. Older European copper smelters could be at risk, while Japanese plants may be sheltered due to their parent companies' stakes in Chilean mines, said Grant Sporre, an analyst at Bloomberg Intelligence. "It's going to be a tough battle for survival.' Granted, the plunge in fees is partly due to relatively slow growth in mine output worldwide - but it's primarily driven by the rapid increase in smelting capacity. China's refined copper output is set to rise ten per cent in the first half of this year and nearly five per cent for the full year, according to researcher Shanghai Metals Market. The argument for China's resilient output rests largely on the belief that state-owned plants are protected because local governments want to safeguard jobs and the economy. "This is a consequence of an economic model that is less responsive to prevailing market conditions as plants can run on very thin margins - or even make losses - for extended periods of time,' Savant, a joint venture by Marex Group Plc and geospatial analysis company Earth-i, said in a note last month. Although cutting overcapacity across the Chinese economy has become a more important policy priority for Beijing recently, so called 'future-friendly' industries like copper, a metal required for electrification and so for the energy transition, are being given more leeway than sectors seen to be in structural decline, such as oil refining. For producers outside China, there is no such cushion. The suspension of Ivanhoe Mines Ltd.'s Kakula copper mine in central Africa has been a blow to ore supply - and at the same time developments like the ramp-up of Freeport McMoRan Inc.'s Manyar smelter in Indonesia are adding more refining capacity to the market. Big smelters may still be able to maintain production for now, following some years of healthy cash flow, said Yongcheng Zhao, an analyst at Benchmark Minerals Intelligence Ltd. The less-efficient ones, though, are at risk. - Bloomberg
Business Times
3 days ago
- Business
- Business Times
China's copper boom under threat as miners test bargaining power
[BEIJING] The unrelenting expansion of Chinese copper processing capacity over the past few years has now become a global headache, as smelters scramble to secure the ore they need to produce the vital industrial metal. Output in the world's top producer of the refined metal has ballooned to a record this year, even in the face of trade tensions wars that are clouding the outlook for demand. The resulting competition has handed bargaining power to some of the world's largest miners. Copper treatment charges, typically a key earner for processors, have plunged deep below zero on the spot market. Chilean miner Antofagasta has proposed negative charges for contracted supplies to smelters in the second half. The fraught situation for smelters worldwide is fuelling expectations of cuts – Glencore shut a facility in the Philippines in February. It's also focusing market attention on the surprising resilience of China's output, and raising the question of how long that can last. Analysts and industry executives say China's output is more resistant to financial pressures because it is now dominated by state-owned producers and by relatively large, efficient and low-cost smelters. Three major new plants were opened just last year, more than offsetting the pain felt by more modest operations. But there's also a still-substantial segment of China's market that is made up of smaller, privately owned smelters with more exposure to a tightening spot market. CRU Group says those plants account for about a quarter of the country's output. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Even if you have very deep pockets and are willing to operate at a loss, at the end of the day you might have to cut production because you simply cannot get the copper concentrate,' said Craig Lang, principal analyst at CRU Group. The stakes are high for the global copper smelting industry. With all high-cost facilities facing losses, every ton that resists financial pressure in China means more pain for those elsewhere. Spot treatment charges to process concentrate fell to negative levels in December, and reached minus US$60 a tonne last month. The fees are deducted from the cost of concentrate and ordinarily make up a large chunk of smelter revenues. Term supplies are now threatening to slide into negative territory too, meaning smelters are effectively paying more for copper ore than the value of the metal contained in it. In February, when fees were less punitive than they are now, Glencore chief executive officer Gary Nagle said he wouldn't keep open loss-making copper plants. The company mothballed a smelter in the Philippines and is cutting costs at plants in Canada. Older European copper smelters could be at risk, while Japanese plants may be sheltered due to their parent companies' stakes in Chilean mines, said Grant Sporre, an analyst at Bloomberg Intelligence. 'It's going to be a tough battle for survival.' Outlook worsening Granted, the plunge in fees is partly due to relatively slow growth in mine output worldwide – but it's primarily driven by the rapid increase in smelting capacity. China's refined copper output is set to rise 10 per cent in the first half of this year and nearly 5 per cent for the full year, according to researcher Shanghai Metals Market. The argument for China's resilient output rests largely on the belief that state-owned plants are protected because local governments want to safeguard jobs and the economy. 'This is a consequence of an economic model that is less responsive to prevailing market conditions as plants can run on very thin margins – or even make losses – for extended periods of time,' Savant, a joint venture by Marex Group and geospatial analysis company Earth-i, said in a note last month. Although cutting overcapacity across the Chinese economy has become a more important policy priority for Beijing recently, so called 'future-friendly' industries such as copper, a metal required for electrification and so for the energy transition, are being given more leeway than sectors seen to be in structural decline, such as oil refining. For producers outside China, there is no such cushion. The suspension of Ivanhoe Mines' Kakula copper mine in central Africa has been a blow to ore supply – and at the same time developments such as the ramp-up of Freeport McMoRan's Manyar smelter in Indonesia are adding more refining capacity to the market. Big smelters may still be able to maintain production for now, following some years of healthy cash flow, said Yongcheng Zhao, an analyst at Benchmark Minerals Intelligence. The less-efficient ones, though, are at risk. BLOOMBERG
Irish Independent
24-04-2025
- Irish Independent
Community hub in Wexford is damaged as flame from bench spreads to surrounding area
Gardaí are currently investigating the damage done to Riverchapel Community Complex which occurred on Sunday, April 13. The complex is still usable but the walls will have to be replaced as well as a bench which was completely destroyed. Chairperson of Riverchapel Community Complex, Craig Lang said the group of youths are well-known locally and clearly identifiable in the CCTV footage they've obtained. "We have clear CCTV footage and we know who it was, it's the same individual who's been causing mayhem here for the last six or seven years. That's why I made sure to say it was local youths because people would jump to conclusions otherwise and assume it's the Dubs," said Craig. To replace the damaged property it is expected to cost between €7,000 and €8,000 altogether. The bench originally cost €1,000, while the slabs on the ground were custom-made, the camera is damaged and the back of the shed needs to be replaced. The fire brigade attended the area twice on the evening of Sunday, April 13, as a group attempted to set the nearby area at the back of the playground on fire as well. "We're all very frustrated because we know who's doing it but nothing can be done about it because of the way the system works,' said Craig. With the community centre breaking ground at the end of this year, Craig suspects they'll have to put security in place to stop further vandalism during its construction. "They've tried to set fire to the building before when we were installing it so it's always the same kids getting involved,' said Craig. Craig paid tribute to local Gardaí who were on the scene quickly when the fire occurred, but highlighted the immense pressure they're under as they're 'very stretched'.
