Chinese companies will balance the global copper market - media

Almaty. December 2. Silkroadnews - Chinese companies will balance the global copper market, informes the newspaper "Vedomosti".
"The Chinese company Jiangxi Copper, and Nonferrous Metals agreed to reduce copper production by 200 thousand tonnes next year. This is confirmed by a source at the 11th Asia Copper Conference, held in Shanghai. It was noted that the company's decision was explained by the fact that the price of copper scrap in China rose and price for copper fell", - noted the newspaper.
Since the beginning of 2015 copper prices dropped by 30% to $4531 per 1 ton - the minimum price since 2008, from the data of London Metal Exchange (LME). Total in the world by the end of this year, copper consumption will amount to 22.1 million tons, forecasted Russian memtal producer "Norilsk Nickel". About 11 million tons of copper this year will consume China itself, the excess will be supplied for export. So, China for January-November 2015 has shipped outside - 171 thousand tonnes of copper. For comparison, in 2014 the export of copper from China was 265.8 thousand tonnes.
According to the "Norilsk Nickel", the production of copper in the world exceeds the demand at the end of this year to 200 thousand tonnes. Thus, when Jiangxi Copper, and Nonferrous Metals reduce production, they will remove any excess of metal from the market. Reduced production will not directly affect the Russian copper producers.
Chinese copper producers are not the first to think about production cuts. Earlier this month, the Russian-Chinese intergovernmental commission recommended that UC Rusal and Chalco to optimize the production of aluminum, in order to avoid inefficient use of energy resources. Then the Director of Strategy and Business Development of UC Rusal Oleg Mukhamedshin said that China is willing to reconsider the production of aluminum, to stop the collapse in prices (25% in the year up to $1585).