Japan Cu Output to Drop by Near 20% in 1H F2011

Japanese major nonferrous metals smelters plan to reduce copper ingot production by near 20% in first half of fiscal 2011 started April from same period of fiscal 2010. The major earthquake impacts on the production when Mitsubishi Materials group’s Onahama smelter in Fukushima stopped the operation while Sumitomo Metal Mining plans major maintenance outage at Toyo smelter in Ehime. Their zinc production also decreases by more than 20% when Mitsui Mining & Smelting group’s Hachinohe smelter in Aomori.

Japanese 3 copper smelters plan 434,350 tonnes of copper production in the first half. The largest smelter of Pan Pacific Copper plans 12% lower production than same period of fiscal 2010 when the smelter in Ibaraki stopped the operation after the quake. Sumitomo Metal Mining reduces the production by 23% in the half year preparing for 60 days maintenance outage from September. Mitsubishi Materials still makes the plan for the half year when the Onahama smelter tries to restart a part of the operation in mid-July.

Japanese copper production of major 4 smelters including Nittetsu Mining could be around 550,000 tonnes in the first half, which is near 20% lower than around 680,000 tonnes in same period of fiscal 2010.

The quake stopped near 70% of zinc making capacity in Japan. Mitsui Mining & Smelting tries to restart of Hachinohe zinc smelter in June. The firm expects the zinc production will decrease by 16% from same period of fiscal 2010 despite of full capacity operation at the plant in Gifu and Yamaguchi. Toho Zinc restarted Annaka smelter in Gunma but the operation rate is still 30% due to stoppage of Onahama smelter, which treats two thirds of raw materials used at Annaka. Japanese zinc production of 4 makers would decrease by more than 20% in the half year.