UPDATE 1-China Jiangxi Copper cuts products output

Tag : refined copper

(Adds analysts' comments, details)
By Polly Yam
HONG KONG, Aug 14 (Reuters) - China's top integrated copperproducer, Jiangxi Copper Co (0358.HK: Quote , Profile , Research , Stock Buzz ) (600362.SS: Quote , Profile , Research , Stock Buzz ), will cut output of semi-finished products by up to 30 percent inAugust after local authorities asked it to reduce powerconsumption, a company spokesman said on Thursday.
Jiangxi Copper, the latest victim of China's power shortages thisyear, has the capacity to produce 700,000 tonnes of refined coppera year, and imports some copper for its products plants.
"We will cut the production of semi-finished products by 20-30percent in August," board secretary Pan Qifang told Reuters. Thefirm has an annual capacity of 370,000 tonnes of semis.
China's power generation growth in July eased further from June toits lowest pace in more than six years, official data showed onThursday, highlighting supply woes that have forced nearly half thenation to ration power.
But other smelters may face the same experience, which would hitproduction in the world's top user in the summer if localauthorities widen their demand for lower consumption to additionalproducers.
Analysts believe power shortages in some Chinese provinces mayescalate in August from July, as Beijing aims to secure electricitysupply for Olympics-related activities and check air pollution byforcing small generators to shut.
To help meet the target, provincial governments are likely to limitpower supplies to local energy-intensive smelters. Continued...