On June 19 (Thursday), a spokesperson for Japan's JX Advanced Metals Corp. stated that the company would reduce its copper cathode production by tens of thousands of metric tons due to tight supply of copper concentrates.
JX Advanced Metals holds a 48% stake in Pan Pacific Copper Co, Japan's largest copper producer, which has a copper cathode production capacity of 650,000 mt per year.
The spokesperson said that while the company is scaling back its smelting operations, it is also strengthening its metal recycling business, including extracting and selling base metals from electronic devices.
Currently, copper smelters around the world are struggling to cope with the shortage of copper concentrates, with reports even indicating that some suppliers have, for the first time, proposed negative treatment and refining charges (TC/RCs) for copper concentrates.
This has severely impaired the profitability of copper smelters.
The company's spokesperson admitted that the company is currently facing a difficult situation in negotiations for long-term copper concentrate supply contracts, "facing stringent terms and conditions."
Japanese copper smelters are currently negotiating long-term copper concentrate supply contracts with overseas copper concentrate suppliers, but given the tight supply of copper concentrates, miners hold the strategic initiative in negotiations.
An analyst from Benchmark Minerals Intelligence said that it is expected that other copper smelters will follow suit and join the ranks of production cuts.
(Wenhua Comprehensive)
