Ten leading Chinese copper producers have announced that they will reduce refined copper output in 2016 by 350,000 tonnes, about 5 percent of China's annual production, in the latest move to reduce overcapacity in the struggling nonferrous metal industry.
The companies have agreed to close poor-quality factories and stop increasing their capacities in the next few years to ensure "healthy development" of the industry, according to a joint statement on Tuesday.
The 10, including Jiangxi Copper and Yunnan Copper, produce about 70 percent of China's annual copper output.
The announcement came amid warnings of excess capacity in the copper industry, blamed for its recent price slumps and poor market prospects as the country's manufacturing sector remained sluggish.
China's refined copper production from January to October increased by 6.8 percent year on year, higher than the global average. Meanwhile, the industry reported a yearly decline of 11.4 percent in profit in the first three quarters, according to the China Nonferrous Metals Industry Association.
The copper companies' plans for production reduction have followed similar actions by other nonferrous metal industries in China.
Last month, major zinc smelters announced plans to cut refined zinc output in 2016 by 500,000 tonnes, equivalent to nearly 10 percent of the country's annual output, while eight Chinese nickel producers said they planned to cut nickel output by more than 20 percent in 2016.
