Shandong’s troubled Fangyuan copper smelter still operating

Shandong-located smelter Dongying Fangyuan is still smelting copper concentrates for cathodes despite the financial difficulties it must overcome to secure raw materials in the face of lawsuits, Fastmarkets has learned.

The smelter managed to obtain letters of credit (LCs) from a few domestic agents so it could purchase concentrates with its remaining balance, various sources have confirmed.
The agents concerned are financing companies that provide deal-specific trade finance, and are commonplace in the Chinese concentrates markets.

“At least one of Fangyuan’s two lines is still operating until the lunar new year [on January 25]. They should have enough feed for now,” a smelter source familiar with the matter said, referring to the...

Published

Julian Luk

January 06, 2020

16:35 GMT

London