China Copper Scrap Output Seen Peaking from 2014

The director of China’s Nonferrous Metals Industry Association claims that copper scrap produced in the country will peak by as soon as 2014, according to a  report by Reuters.

"Another five to six years, the collection of copper scrap domestically would enter into the peak period," Lu Jian, director of the information department of the association's recycling branch, told the news agency during a copper industry conference.

He did not provide a scrap production estimate for that period but for this year Lu said the production of copper scrap in China would fall from last year's 600,000-700,000 metric tons following a sharp supply fall in the first quarter, when the global financial crisis cut demand.

"The local collection of copper scrap basically stopped in the first quarter," Lu said.

He added that imports had also fallen mainly due to reduced overseas supply and tighter customs checks on scrap imports since May, increasing the cost of imports.

China produces a third of its copper scrap, heavily relying on imports, which fell 33 percent on the year to near 3 million tonnes in the first nine months of the year.

China produced 1.2 million metric tons of recycled copper in the first nine months of the year of which only a third came from locally collected scrap, he said.

That recycled copper output reflects a near 16 percent fall in monthly production on average this year. The output was 1.9 million metric tons in 2008. Reuters