Copper Smelter Output Plunged Despite Surge in Demand

SEATTLE (Scrap Monster): The Japanese refined copper output from smelters is likely to witness marginal decline by 1.9% during the initial six-month period of the 2021/22 financial year. This is despite recovery in demand following the Covid-19 slump. The above assumption is based on plans outlined by Japanese copper smelters.

The recent fire at a Japanese semiconductor factory will result in reduced output by automakers due to global chip shortage.

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Although Pan Pacific Copper (PPC)- the country’s largest copper supplier plans to raise its output slightly, others including Sumitomo Metal Mining (SMM) and Mitsubishi Materials plans to reduce output during the second half of the financial year. Incidentally, SMM plans to undertake maintenance works at its Toyo factory, whereas the fault with oxygen supply system at Mitsubhishi Materials’ Onahama plant is likely to impact output significantly.

The country’s demand for wrought copper products is likely to surge 13.4% in the 2021/22 year, said the Japan Copper and Brass Association. The drop in electric wire demand on account of slow recovery by construction sector is feared to keep the overall copper demand to below 2019 levels.