Global Copper Smelting Activity Plunges to 2-Year Low in April, Nickel Index Dives

Published: May 8, 2023 19:38

Save

Satellite monitoring data of metal processing plants released on Friday showed that global copper smelting activity fell to the lowest level in two years in April, as Chinese smelters were closed for maintenance and production at North American factories slowed.

Earth-i, which specialises in observational data, tracks smelters activity that accounts for 80-90% of global production. The agency sells data to fund managers, traders and miners. It also publishes a free monthly index of global copper smelter activity.

The global copper dispersion index, which measures smelter activity, fell to 44.0 in April from 46.8 in March, the lowest since March 2021. The North American regional dispersion index fell to 24.2, the weakest level since July 2020. A reading of 50 points indicates that smelter operations are at the average level over the past 12 months.

There is also a second index showing the percentage of active smelters. The dispersal index may remain under pressure as Indonesia's PT Smelting Gresik smelter is set to shut down for 75 days starting this month, while Bulgaria's Aurubis Pirdop operation is also expected to undergo maintenance, the statement showed.

"The most immediate impact of the decline in global smelting activity in April was the rise in processing and refining charges in the barrel concentrate market," said Guy Wolf, global head of analytics at Marex.

He added that the dispersion index has an inverse correlation with LME copper prices, so it is expected to rise in the second half of the year after bottoming out.

In the nickel market, the global dispersion index fell to 43.3 in April from 46.8 in March.

China's nickel pig iron (NPI) index fell to 37.9 in April, the lowest level since February 2022, from 45.4 in March.

More popular news

'Bond King' Jeffrey Gundlach Says Sharp Fed Rate Cuts By Year-End Will Push Up Gold Prices

Sharp Output Cuts Led to Lithium Ore Shortages, High Import Prices Drove Lithium Salt Producers to Shut Down

Rio Tinto Warns of Risks for Paying High Premiums for Lithium Mines after Plunging Lithium Prices Triggered Acquisition Rush

China's Manufacturing Industry will Not be Replaced by Any Other Countries Including India

US Treasury Bill Rates Soar to Record High on Debt Ceiling Jitters

Russia is Accelerating Technology to Become Top Liquefied Natural Gas Supplier by Tripling Exports By 2030

SMM Daily Comments (May 5): LME Base Metals Rose across the Board, SHFE Nickel Plunged

SMM Daily Comments (May 4): Coking Coal and Oil Prices Plunge, SHFE Nickel Soar, Gold Hit Record High

IMF Slashes Saudi Arabia GDP Growth 2023-2024, Saying the Country Can’t Achieve Budget Balance This Year unless International Oil Prices Surge to $81 per Barrel

JPMorgan Asset Management: US Treasury Bonds will Strengthen

Market forecast Market review Macro economy Output

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

1 min ago

Boliden Earnings Improve as Investors Stay Bullish on European Copper Exposure

Swedish mining company Boliden reported improved first-quarter earnings, supported by higher copper prices and stronger cost controls. Although European industrial demand remains relatively soft, investors continue focusing on long-term copper supply tightness. Boliden said it will continue optimizing its Nordic mining and smelting operations.

1 min ago

25 mins ago

India’s Top Copper Producers Oppose Scrap-Based Rod Standards

India’s leading copper producers, including Adani, Vedanta, Hindalco, and Hindustan Copper, are opposing the inclusion of scrap-based copper wire rods in national quality standards. The companies argue that some recycled copper products may not meet the purity requirements needed for transformers, power cables, and other critical electrical infrastructure. The debate comes as India rapidly expands its power grid and clean-energy investments, driving strong copper demand growth. Analysts say the dispute reflects growing efforts to strengthen copper supply-chain quality and security in India.

25 mins ago

51 mins ago

Shuka Mining Launches Drilling in Zambia; Overnight LME Copper and SHFE Copper Both Closed Lower [SMM Copper Morning Meeting Minutes]

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,489/mt, initially rising to $13,533.5/mt before the price center gradually shifted lower to $13,386/mt, ultimately closing at $13,427/mt, down 1.2%. Trading volume reached 20,000 lots, and open interest stood at 277,000 lots, a decrease of 6,463 lots from the previous trading day, indicating bulls reducing positions. Overnight, the most-traded SHFE copper 2606 contract opened at 104,130 yuan/mt, initially touching a high of 104,170 yuan/mt before the price center shifted lower to a low of 103,390 yuan/mt, ultimately moving sideways to close at 103,670 yuan/mt, down 0.82%. Trading volume reached 31,000 lots, and open interest stood at 143,000 lots, a decrease of 4,124 lots from the previous trading day, indicating bulls reducing positions.

51 mins ago