Tongling Nonferrous Metals Group, a leading Chinese copper producer, has announced a delay in the production start date at its new plant in Anhui province until the second half of 2025. Key points include:
The plant, which is the largest copper facility to be built in China in over a decade, is expected to have a capacity of 500,000 metric tons per year and was initially slated to begin operations in January.
The delay is attributed to shortages of raw materials necessary for copper production, raising concerns about China’s broader copper expansion plans.
This postponement could lead to a tighter refined copper market, potentially supporting copper prices, as the anticipated surplus may be narrower than previously forecasted.
Tongling’s inability to secure enough concentrate has been compounded by disruptions at other major operations and export limitations from countries like Indonesia and the Democratic Republic of Congo.
Despite the challenges, China is projected to have a significant expansion pipeline of 3.2 million tons of copper smelting capacity over the next five years.