Japan Nonferrous Smelters Expand Production Cut

Japanese nonferrous smelters expand the production cut. Pan Pacific Copper reduces the production by 10% in January. Sumitomo Metal Mining reduces the production by around 10% in second half year of fiscal 2008 from original plan while Toho Zinc reduces the production of zinc and lead by more than 10%. Mitsui Mining & Smelting reduces the distilled zinc while Mitsubishi Materials and Dowa Holdings started study for production cut.

Japanese copper ingot demand decreases recently. The demand decreased for automobile and appliances recently in and after October while the demand was slow for construction. Rolled copper makers’ capacity utilization decreases to around 30% reducing the ingot demand.

Pan Pacific Copper reduces the utilization by 10% at Okayama plant. The production will decrease by 5% from original plan. The firm considers additional production cut up to 20%.

Mitsubishi Materials started study for potential production cut. An official of the firm said the firm should reduce the output by minimum 10%. The firm considers expansion of maintenance work period in March.

Sumitomo Metal Mining reduces the production plan by 7% in the second half. The production decreases by 14% in January-December from previous month.

Toho Zinc reduces the production by 12% for Zinc in Gunma and by 14% for lead in Hiroshima. Sumitomo Metal Mining and Mitsui Mining & Smelting and Mitsui Mining & Smelting reduce the output of distilled zinc.