Copper cathodes of KGHM on new exchange in China

KGHM Polska Miedź S.A. has registered its primary product, copper cathodes, on Shanghai International Energy Exchange – INE. INE is a recognised player in the global market with 7 storage facilities with a total capacity of 215 thousand tonnes. Most of the global copper producers are in the process of registering.

– Chinese market is extremely important for KGHM. Thanks to the registration, we will be able to guarantee our recipients the possibility of working with a new exchange using our product. KGHM's copper cathodes are a proven brand recognised all over the world – said Paweł Gruza, Vice President of the Board of KGHM Polska Miedź S.A. for foreign assets.

Copper cathode is a form of copper with a purity exceeding 99.9%. In KGHM Polska Miedź S.A. it is produced at the "Głogów" Copper Smelter and the "Legnica" Copper Smelter. They are characterised by excellent quality, already confirmed by certificates issued by the London Metal Exchange and the Shanghai Futures Exchange.

Copper, as an excellent conductor, is most commonly used for the production of electrical cables, in electrical engineering applications (profiles, rails) and construction (e.g. copper pipes).

China is the largest consumer of copper in the world. Copper is used by the local economy as one of the key raw materials for the energy transition.

The cathodes produced by KGHM have been present on the Chinese market for 25 years. The sale of copper to China accounts for approximately 10-15% of the company's sales revenue. The copper giant is one of the largest Polish exporters to the Middle Kingdom.

KGHM's cooperation with the Chinese market is based on long-term contracts with one of the largest recipients of copper cathodes, China Minmetals Nonferrous Metals. The latest contract was concluded in 2018 and provides for the supply of cathodes to China in the years 2019-2023.