The stoppage might imply the discharge of copper uncooked supplies to the market, which has confronted unprecedented shortages this 12 months.
The fireplace on the Daye operations in China’s central Hubei province broke out on Saturday at its sulphuric acid facility, mentioned the sources, who declined to be named.
Sulphuric acid manufacturing is an integral a part of the copper smelting course of, gross sales of which contribute to smelters’ revenues.
Though main smelting can be shut, Daye’s refinery will stay in partial operation to provide copper cathodes utilizing intermediate merchandise like scrap and blister, the sources mentioned.
Daye, a subsidiary of China Nonferrous Mining Corp, mentioned on Monday it anticipated to provide 680,000 metric tons of copper cathode this 12 months after taking account of the impression of the hearth.
In March, the corporate mentioned it was focusing on output of 870,000 tons of copper cathode.
Fundamentals alongside the copper provide chain are more and more polarized, with mined copper concentrates dealing with shortages as a result of fast growth of worldwide smelting capability.
In the meantime copper cathodes, a extra refined type of copper for making cables and wires, are dealing with a surplus as a result of lacklustre demand from high purchaser China.
(By Julian Luk and Mai Nguyen; Modifying by Ros Russell)