Copper prices inflated on Wednesday to their highest in 7 months after Chinese smelters which process half of world mined copper agreed on joint production reduction.
The rise begin of Shanghai Future Exchange SHFE where copper reached 2 year high of 70,460 yuan per ton.
China mega copper smelter met in Beijing on Wednesday agreeing on cut in loss making production without timing and volumes.
Shortages have led to competition for mined copper concentrates causing a decrease in income for smelters to decade low levels.
High copper prices could dampen demand in consumer China as can be view in inventories.
Copper inventory in warehouse monitored by SHFE climb to 239,245 tonnes at March 8 from 30,905 tonnes in start of year.
Global copper smelters were not working in first 2 months of year than in same period last year because of Chinese inactivity date from satellite surveilance of metal processing plants showed.
LME aluminium down o.3% to $2,258.5 ton nickel eased 1.4% to $18295 tin rose o.3%
Australian miners are looking confusing as China mega copper smelter meet in Beiking this week to discuss a reply to shaken profits.
Most of China copper industry state owned representative of 15 mega smelters have been called to Beijing this week to discuss co ordinated reply including potential production cuts.
Once globally regulated corporation retreat from financially unviable section, close mines and liquidate processing infrastructure. China state owned operation can step back in and captur greater portion of the global market.
Global demand for copper has decrease as consumer reduce their spending in face of high living costs.
An expected rise in global ev sales is yet to climb.
China is consuming more than half of the globe copper consumption.China economy is in dark.
China continues to invest heavily in securing metal and mineral supplies from more friendly nations than Australia.
It is investing $1.5 billion in transforming an old railway network linking Zambia copper belt and Democratic Republic of Congo with Tanzanian Indian Ocean port of Dar es Salaam.
Australia has wold 2nd mega copper reserves showing 10 percent of known deposits. It is listed as only the globe 8th mega producer digging up 810,000 metric tonnes previous year.
Australian had not designated copper as critical mineral. The China, EU, US have.
Market analysts are optimistic about future of bulk copper with some projecting annual earnings growth of 70 per cent over next five years.
