Glencore’s copper production declines while China reviews scrap imports

Glencore PLC, which is one of the biggest producers of the red metal, upgraded its full-year earnings guidance today, however, indicated that in the first half of this year ending on June 30th, the copper production has declined by 9 percent to 642,900 tons from a year ago, when it produced about 703,000 tons of copper. Glencore is the third biggest copper producer in the world, with a total production of 1.29 (approx.) million metric tons produced in 2016.

This news comes at a time when China has announced that it may ban imports of some scrap metals including copper from the end of next year, which will surely lead to a greater demand for refined products. The authorities are currently reviewing the scrap imports data and the impact it has on the environment. The review of copper scrap imports is part of a broader crackdown by China authorities on imports of foreign waste as it looks to cut pollution from heavy industries to clear its skies. The recycling branch of the China Non-Ferrous Metals Industry Association said on Tuesday that it had received a notice that at the end of 2018 imports of scrap metal including wire, motors and bulk scrap metal will be prohibited.

The news has already pushed the copper price to the highest level since May 2015. The Comex copper is currently trading at $2.88 per pound and the Glencore update is likely to fuel further speculations and push copper towards $3.2 per pound.