Japan Copper Output to Drop by 4% in 2H F2010

Japanese copper production decrease by 4% in second half of fiscal 2010 ending March 2011 from same period of fiscal 2009, according to 8 major nonferrous smelters’ production plan announced by Wednesday. The largest copper maker, Pan Pacific Copper expands the production cut due to tight supply of copper ore. Japanese production increases by 8.3% for zinc and by 11.5% for lead. Their production level improves under recovering demand.

Pan Pacific Copper announced the firm plans to make 271,100 tonnes of copper in the second half of fiscal 2010, which is 5% lower than same period of fiscal 2009. The firm reduces the production by 8.4% to 178,900 tonnes at Saganoseki smelter and Hitachi plant. The firm reduces the copper volume by 2.1% to 92,200 tonnes in attributable production from Hibi Kyodo Smelting. Pan Pacific Copper increases the production cut to 10% in October-December and to 15% in January-March compared with 7% cut since January 2009.

Sumitomo Metal Mining plans 202,000 tonnes of copper output in the second half of fiscal 2010 from same period of fiscal 2009 as original plan in April. The production level is 10% lower than the output capacity. Mitsubishi Materials plans full capacity operation in the second half while the output decreases by 11% from same period of fiscal 2009 due to 18 days maintenance outage at Naoshima smelter.

Mitsui Mining & Smelting announced on Wednesday the zinc production will increase by 6.5% in the second half of fiscal 2010 from same period of fiscal 2009. The lead output will increase by 8.4%. Dowa Holdings also plans to increases zinc output by 11% when the firm increases the operating rate to meet recovering demand.