Bloomberg reported that refined copper production in China may fall 500,000 tonnes in 2013 about 9% of the output last year on a scrap shortage and delayed commissioning of new facilities, the nation’s third largest producer said.

Mr Chen Jie head of sales and marketing unit of Jinchuan Group Company said that “Scrap supply will be even tighter going into June. The smelter’s own refined production may fall short of a target of 600,000 tonnes this year by at least 100,000 tonnes.

Mr Chen said that copper in London has retreated 8% this year on concern that a slowdown in China’s growth could hurt demand from the largest user. A 6.4% slump in April has kept scrap dealers unwilling to sell, and China’s ports began tighter enforcement of existing rules in February to weed out low grade scrap, slowing customs procedures.

Mr Pang Juan an analyst at Jinrui Futures Company said that “Market participants can now feel the tightness as scrap traders really don’t have much at hand to sell. That will help drive up local prices and attract more imports in June.”

Copper for immediate delivery on Shanghai’s Changjiang Nonferrous Metals Market was quoted at a premium of CNY 500 per tonne to the front month contract on the Shanghai Futures Exchange.

Mr Chen said that “Consumption this year is better than last year. We may not see the lull season in summer as usual, as demand from construction of subways, railways and power grids all seem to be better than last year.”

He said that plants that previously used scrap copper to make copper rod have been using refined metal. They also said their orders books in June are as good as in May, which is quite unusual, showing demand is fairly good.