Most of the large-scale copper mines saw year-on-year declines in output in H1

Published: Aug 6, 2020 16:00

Save

Most of the large-scale copper mines in the world saw year-on-year declines in output in the first half of 2020, according to their H1 production results.

SHANGHAI, Aug 6 (SMM) — Most of the large-scale copper mines in the world saw year-on-year declines in output in the first half of 2020, according to their H1 production results.

BHP, Codelco, Freeport, Glencore and Southern Copper ranked top in copper production in the first six months of 2020. Among the 13 mines surveyed by SMM, only 4 saw year-on-year rises in copper output, including Codelco (+5%), Southern Copper (+2%), First Quantum Minerals (+19%) and Lunding Mining (+9%). Commissioning of the Cobre Panama project mainly contributed to the increase in copper output of First Quantum Minerals, and acquisition of the Chapata copper mine helped H1 output at Lunding Mining rise 9% on year.

Output fell sharply at Glencore (-11%), MMG (-22%) and Teck Resources (-12%). SMM found that mines who saw sharp falls in output all have copper mines in Peru which was badly hit by the coronavirus in the first half of this year. H1 output shrank 31.9%, 19.3% and 29.2% at Antamina, Antacappay and Las Bambas respectively, all on a yearly basis.

Impact of Covid-19 on overseas mines worsened in Q2. Of the 13 mines surveyed by SMM, 8 suffered falls on second-quarter copper output, of which Codelco (-7.8%), Antofagasta (-8.4%), First Quantum Minerals (-13.3%), Vale (-10.6%), MMG (-16.2%) and Teck Resources (-16.4%) saw larger declines.

H1 copper output shrank in Peru, but expanded in Chile and Zambia. Chile’s copper output slid for the first time in June since the outbreak of the coronavirus pandemic, dipping 0.6% on year to 472,172 mt, according to data from INE. Copper output at Codelco, the world’s largest copper producer, expanded 4.7% to 744,000 mt in H1 from the same period of last year despite impact from Covid-19. Zambia produced 420,000 mt of copper in H1, up about 6% from a year earlier.

In the first half of 2020, Peru’s production of copper, gold, zinc, silver, lead, iron and tin all decreased compared with the same period last year. Copper output fell 20.4%, gold output plunged 34.7% and zinc output shrank 23.7%.

Copper Output Covid-19

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 mins ago

Copper Prices Drop Below 96,000 Yuan/mt, Prompting Increased Orders and Higher Processing Fees

【SMM Copper Cathode Rod Flash News】Copper prices pulled back sharply and fell below the 96,000 yuan/mt mark, prompting downstream enterprises to engage in concentrated procurement, while new orders received by copper cathode rod enterprises increased significantly starting from the night session. To manage the pace of taking orders, enterprises raised processing fees one after another; meanwhile, due to the surge in order volumes and concerns over downstream cargo pick-up progress, some enterprises have already increased deposits to control risks.

11 mins ago

21 mins ago

Copper Prices Pulled Back, Stimulating Downstream Purchasing Enthusiasm; Destocking Accelerated, but Suppliers Sold on Strength, and Spot Premiums Rose First and Then Came Under Pressure [SMM Shanghai Spot Copper]

[SMM Shanghai Spot Copper] During the day, the SHFE copper 2604 contract extended its decline, with the trading range falling further to 95,500-96,000 yuan/mt. The center of copper prices kept moving lower, significantly stimulating downstream enterprises' demand to buy the dip and restock, while spot market trading sentiment clearly recovered. Demand side, according to SMM, most downstream enterprises saw a surge in order volumes, with a substantial increase from the previous period, and end-user cargo pick-up enthusiasm also improved in tandem. The pullback in copper prices became more attractive to enterprises, and purchase willingness to buy the dip was strong. Suppliers held prices firm accordingly, driving a notable rebound in spot premiums in early trading. Supply side, social inventory destocked sharply by 24,200 mt from Monday, and the pace of destocking accelerated. The rebound in spot premiums raised suppliers' willingness to sell, leading to more warrants flowing into the market. As premiums reached the psychological expectations of some suppliers, selling of spot warrants began to emerge, easing the previously tight spot supply situation and causing spot premiums to decline later. Overall, current copper prices have become more attractive to downstream enterprises, and faster destocking supports the spot market, but suppliers' selling at high levels combined with changes in the price spread between futures contracts structure put pressure on premiums. Under the tug-of-war between sellers and buyers, Shanghai spot copper is expected to remain in a tug-of-war pattern tomorrow, with premiums likely to stay in the discount range.

21 mins ago

1 hour ago

Increase in Order Intake of Enamelled Copper Wire Enterprises

SMM: Copper prices fell today, with the center dropping below 96,000 yuan/mt. Downstream orders were active, and enamelled wire enterprises saw a marked increase in order intake.

1 hour ago