According to data from satellite surveillance of metal processing plants, more global copper smelters were inactive in March compared to the first two months of the year. This shift occurred after Chinese smelters proposed output cuts, and other facilities worldwide underwent planned maintenance, as reported by Reuters.
Earth-i, which specializes in observational data, tracks smelters representing up to 90% of global production for its SAVANT service and sells data to fund managers, traders and miners.
The company said that an average of 17.7% of global copper smelter capacity monitored was inactive in March compared with 11.5% during January and February combined.
Read also : China’s top copper smelters call for production cut to stabilize market
Average inactive capacity in China rose to 9% in March from 8.3% in the first two months, it added in a statement on Thursday.
China’s top copper smelters proposed in late March to cut production by 5% to 10%, sources told Reuters, after the world’s top producer of refined copper battled short supply of raw material and losses at some operations.
“As market watchers seek confirmation of pledged curtailments in China … inactivity in the country jumped sharply in the final days of March, ending the month at a substantially higher 12.8%,” Earth-i said.
Outside China, the Isabel plant in the Philippines has shown “flickers” of inactivity, along with Codelco’s Chuquicamata smelter in Chile, it added.
“We are now entering a period of several scheduled maintenance closures.”
Editing by Reiner Simanjuntak
