China February Copper Output Dips on Lunar New Year Holiday

Copper output in China, the largest user, dropped in February from the previous month as smelters suspended capacity during the Lunar New Year holiday.

Production of refined copper was 386,000 metric tons, 5.6 percent lower than in January, according to Bloomberg News calculations. Still, output was 7.9 percent higher than the same month a year earlier, according to the National Bureau of Statistics. Financial markets closed for the week-long holiday that started Feb. 2.

Copper futures advanced to a record $10,190 a ton on the London Metal Exchange last month, after rising 30 percent in 2010, as demand outpaced supply and the global economy recovered. China’s industrial production in the first two months of this year gained 14.1 percent, accelerating from 13.5 percent in December, bureau data show.

“The dip in February was due to the long Chinese New Year holidays,” Zhu Lin, an analyst at data provider Shanghai Metals Market, said by phone. “Both the January and February data are in line with our expectations.”

Refined copper output expanded to an all-time high of 444,000 tons in December as record prices prompted smelters to ramp up production.

Copper in London gained as much as 0.9 percent to $9,275 a ton today, paring the worst weekly slump since June.

(Source: http://www.bloomberg.com/news/2011-03-11/china-february-copper-output-dips-on-lunar-new-year-holiday-1-.html)