PPC to Continue 7-8% Electrolytic Copper Output Cut in F2010

Japanese largest copper smelter, Pan Pacific Copper (PPC) plans to continue output reduction of electrolytic copper in fiscal 2010 starting in April. The reducing rate would be 7-8% against the capacity. The main reason is copper ore shortage. Details of the production cut will be determined soon.

PPC produces electrolytic copper at 3 smelters in Japan, those which are Saganoseki Smelter & Refinery of Nikko Smelting & Refining in Oita Prefecture, Hitachi works of Nikko Smelting & Refining in Ibaraki Prefecture and Tamano smelter of Hibi Kyodo Smelting in Okayama Prefecture. The total production is approximately 600,000 tonnes per year.

Copper ore supply is tightening globally when smelter establishment and expansion have been very active in China. Yoshihiro Nishiyama, PPC’s director, said PPC cannot secure enough copper ore to bring its 3 smelters into full productions.

PPC started 10% output reduction against its capacity in January 2009 in response to the demand shrinkage caused by world economy deterioration. The firm eased the cut range in and after April since Chinese demand turned to the rapid increase. PPC’s actual production totaled 298,800 tonnes for April-September 2009 while the output plan is 286,000 tonnes for the rest 6 months of fiscal 2009.