Japan Smelters to Reduce Zinc and Lead Output in 1H

Japanese nonferrous smelters start the ingot production plans for first half of fiscal 2006 started April. The lead and zinc smelters are forced to reduce output due to less availability of raw materials despite of the strong demand and surging price at home and abroad. The copper smelters also have to deal with the lower grade copper ore though they try to increase output in the full capacity operation or expansion. Mitsubishi Materials announced on Monday the firm will increase the copper ingot output by 18% to 171,618 tonnes in the first half from same period of 2005. The firm plans to reduce the output by 13% to 7,812 tonnes for lead ingot and by 15% to 4,650 tonnes for zinc ingot. The firm also reduces the output by 15% to 19.302 tonnes for gold and by 10% to 202.998 tonnes for silver. The firm increases the copper ingot output in the first half when the firm operates the facilities at full capacity compared with same period of 2005 when the firm reduced the output due to planned maintenance at Naoshima smelter and refinery. The firm reduces the output of lead and zinc by more than 10% in the first half from same period of 2005. The firm is forced to reduce the output to the lowest level in 10 years due to the less availability of raw materials under very tight international zinc ore supply and Japanese higher export of waste battery. The firm also reduces the output of gold and silver due to the lower grade ore. Sumitomo Metal Mining announced on Monday the firm increases the copper ingot output by 25% to 184,400 tonnes in the first half from same period of 2005. The firm increases the electrolytic nickel output by 1% to 16,300 tonnes while the firm reduces the output by 10% to 39,500 tonnes for zinc at Harima smelter and by 13% to 13,100 tonnes for lead. The firm increases the output by 10% to 23.9 tonnes for gold and by 22% to 147 tonnes for silver. The firm increases the copper output in the first half when the Toyo smelter pumps up the operation to full capacity after the expansion compared with same period of 2005. The copper-byproducts of gold and silver output also increase. The firm reduces the zinc output in the first half from same period of 2005 due to planned maintenance along with the less availability of raw materials. The firm also reduces the lead output, of which the firm doesn’t use waste battery as raw material, due to planned maintenance. Japanese 8 major smelters announce the output plans for the first half in the week.