The 400,000 metric ton-per-year smelter, located in Chongzuo city of Guangxi prefecture, will start processing copper concentrates within three months - compared with market expectations for the first half of 2024.
"It came as a surprise," one major copper concentrates supplier said, adding that Nanfang had been buying more raw copper materials on the spot market over the past two weeks.
Purchasing copper concentrates requires access to liquidity and cash, particularly given relatively high copper prices around $8,400 a metric ton.
"It is easier to finance copper projects, credit lines are sufficient to kick-start the second smelting line.
Rising domestic copper smelting capacity in China will mean growing demand for copper concentrates and less appetite for buying refined copper from foreign companies.
Persons:
Nanfang Nonferrous, Nanfang, COVID, Tongling, Julian Luk, Pratima Desai, Veronica Brown, David Evans
Organizations:
Reuters, Thomson
Locations:
China, Chongzuo, Guangxi prefecture