Copper production improved supply situation but insufficient to reverse the weak copper prices

Updated: October 20, 2015  Views: 24

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Once earned pours large mining enterprises, now has been hit after copper prices plunged, profit greatly reduced. To avoid the widening crisis, the global number of large mining has all its trick, to take cuts, layoffs, etc., trying to cut costs, reduce the debt ratio, and raise the price of copper.

According to statistics, the world's major mining companies announced production cuts are:

Glencore but this year the largest mining companies hit by the recent debt crisis once its shares plummeted a record low point, until today announced third of zinc production cuts after the stock was stabilized. To deal with the debt crisis, early September Glencore Executable long 格拉森博格 (Ivan Glasenberg), said Africa Katanga and Mopani copper mine shut down for 18 months, is expected to reduce the discount contracts on the market 400,000 tonnes of copper metal. >> View details

Freeport Copper & Gold Inc. Macmillan: Cut McMoRan Copper 136,000 t of copper production (wet copper), which yields the same this year, next year is expected to reduce 70,000 tons, is expected to reduce 70,000 tons the year after addition, the company in September. said the United States, Arizona is located off a copper mine and cut output size in Mexico and Chile, two copper mines.

Grupo Mexico: Asarco's copper cut annual 30,000 tons of refined copper, the production cuts will involve concentrator and related activities of the company.

Anglo American and Glencore jointly owned Collahuasi copper mine: the annual output of 30,000 tons of refined copper mine, in 2014 the company produced 470,000 tons of copper.

Europe's second largest copper producers - Poland KGHM Company on September 21 announced that its Canadian province of Ontario McCreedy West mine will be in the 'Maintenance state', in 2013 20 thousand tons of the copper mineral copper.

Mawson West's Dikulushi mine since January started to maintain state. Last year, the mineral copper (copper content in concentrate) 30,000 tons.

First Nickel's Lockerby mine into bankruptcy in August, the mine within the deadline of six months June 30 copper producing 2.8 million pounds.

Nyrstar's Campo Morado mine in Mexico and the Myra Falls mine in Canada will begin to close since the beginning, the two copper production in 2014 were 23 million tons of copper and 3,900 tons.

After a number of mining companies to cut, whether copper supply surplus situation has improved? October, the International Copper Study Group (ICSG) The 2015 surplus of refined copper supply from the April estimate of 364,000 tons down to 41,000 excess tons, this year's global refined copper supply and demand should be able to basically maintain a balance, it is expected to appear in 2016 130,000 tons of refined copper supply gap.

From the ICSG major caliber seen, the current pattern of copper supply surplus production as mining companies have been quietly changed, no longer seen as the pre-market overly pessimistic. However, the current global production minus mining enterprises still not enough to make the price of copper reversal of the weak pattern, because copper demand has not improved now. If copper prices fall further or will stimulate more production mining enterprises to join the ranks, where long years of costly mines as well as rely on gold and molybdenum by-products and to maintain the production of mines bear the brunt of this week's meeting of LME metal, Chile's national copper company Codelco's CEOóscar Landerretche has committed itself, if copper prices continue to fall, it will consider short-term financing is limited cuts to ensure the future development of enterprises.

(Source: SMM)


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