Jiangxi Copper Q3 profits fall from prior quarter as price rally fades

By Kitco News / October 28, 2021 / www.kitco.com / Article Link

Oct 28 (Reuters) - Jiangxi Copper Co,one of China's biggest copper producers, saw profits fall 33% inJuly-September from the previous quarter as prices for the metaldipped after a stellar rally.

Copper prices surged to a record high this year as demandfor the metal widely used in power and construction reboundedamid a supply crunch after coronavirus curbs were lifted, butprices pared back some of those gains in the third quarter.

The Nanchang-based company, which controls both copper minesand smelters, said in a filing to the Shanghai Stock Exchangeits net income in July-September was 1.46 billion yuan ($228.2million).


That was down from 2.18 billion yuan in the second quarter,which was Jiangxi Copper's best result in 10 years, but still up85.9% year-on-year as copper prices remain higher than in2020. Third-quarter revenues were down around 11.5% from theprevious quarter at 110.46 billion yuan, but up 37.6% on theyear.


The company did not provide a reason for thequarter-on-quarter decline but benchmark London copper prices fell for the first quarter in six in July-September,shedding 4.7% after striking a record high of $10,747.50 in May.

Prices are still up more than 24% year-to-date, with demandfor the metal buoyed as economies reopen from coronavirus curbsand as concerns over tight supply linger.

Jiangxi Copper did not report any third-quarter productiondata in its filing.

($1 = 6.3978 Chinese yuan)

(Reporting by Tom Daly; Editing by Ana Nicolaci da Costa)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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