According to an International Copper Study Group (ICSG) November release, global refined red metal output was unchanged for the first 8 months of 2019 compared to a year ago. Preliminary data indicates that world refined production remained essentially unchanged in the first eight months of 2019 with primary production (electrolytic and electrowinning) declining by 0.3% and secondary production (from scrap) increasing by 1.8%.
Growth was constrained by production declines in Chile, Zambia and India. Chile had a 32% slide in electrolytic refined output on account of temporary smelter shutdowns whilst undergoing upgrades tocomply with new environmental regulations. Total Chilean refined production (including Electrowinning) declined by 12%.
Africas second largest producer suffered a 33% plummet in output as energy woes weigh causing supply interruptions, smelter outages and temporary shutdown. Mining productivity was impacted by a 5% custom duty on copper concentrate imports constraining smelter feed while India experienced a 25% slide in production mainly due to Vedanta’s Tuticorin smelter shut down in April last year.
Other jurisdictions that experienced declines in output include Japan, Peru, the United States and a few European countries due to smelter maintenance shutdowns off-course offset by growth in Chinese output and by increases in countries recovering from production constraints in 2018 such as Australia, Brazil, Iran and Poland.
On a regional basis, refined output is estimated to have increased in Asia (3.5%) and in Oceania (15%) but declined, in North America (-3%), in Latin America (-9.5%), in Africa (-8%) and in Europe (-1%).
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