Global copper smelting activity in August fell as plants largely extended maintenance downtime, while flooding and power constraints also had an impact on copper smelting activity.
Satellite service SAVANT and broker Marex said copper smelters continue to shut down maintenance operations, anticipating higher processing and refining fees for concentrates later this year.
Processing fees for copper concentrates in China are currently at a roughly 16-month high at $60.50 a tonne – paid by miners to smelters and a major source of revenue.
Recent flooding in China, the top copper consumer, has caused some mills in the south central region to reduce their smelting operations, while China’s smelters more broadly have been shut down. affected by power limitations.
South American smelters have bucked this trend, with smelting on mines rising above the global average to take advantage of higher copper prices.
Some factories in the south central region reduced their metallurgical activities, while smelters were affected by power restrictions.
Copper prices on the London Metal Exchange are up about 20% this year so far, hitting a record in May 2021.
Earth-i, which specializes in geospatial data, launched its SAVANT service late last year, which tracks more than 100 smelters representing 80% to 90% of global production.
According to SAVANT’s dispersion index, 50 points indicate that smelters are performing at average levels over the past 12 months. It also has a second indicator that shows the percentage of furnaces that are active.
The global dispersion index fell to an average of 45.9 in August from 48.2 a month earlier.
China, the world’s top producer of refined copper, fell to 44.6 in August from 46.2 in July. South America rose to 62 from 52.3 a month earlier while North America dropped to 42.7 from 39.8 in July 2021.
For the nickel sector, production disruptions due to floods, labor strikes, civil unrest and the SAVANT Global Inactivity Index have increased since late May at a time of strong stainless steel demand. Nickel cast iron (NPI) production in both China and Indonesia declined in August 2021. All causes start downstream.
Source: VITIC/Reuters
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