Pan Pacific Copper to Ship More Copper to China

Japanese largest copper smelter, Pan Pacific Copper tries to increase the export to China. The firm covers lower domestic demand under slower economy by increasing the export to China when Chinese demand is firm for infrastructure including power generation and railroad. The firm increases export of sulfuric acid to China.

Pan Pacific Copper exported 170,000 tonnes of copper in 2008 for China, Taiwan and South Korea while the firm makes around 600,000 tonnes annually. The export to China was 150,000 tonnes. The firm already got export orders at around 150,000 tonnes mainly for shipping in first half of 2009. The export volume could increase in 2009 from 2008.

The firm, however, continues 10% production cut in and after April. Japanese copper demand is around 1.2 million tonnes per year but the firm expects the demand could decrease by around 20% in 2009 due to slower activity in automobile, appliances and construction sectors. The firm expects the domestic sales could decrease to around 350,000 tonnes in 2009 from 420,000 tonnes in 2008.

The firm also tries to double the sulfuric acid export to China, which reduced the import to 1.6 million tonnes in 2008 from normal level of 2 million tonnes. The firm tries to meet firm demand in China when the firm expects Chinese import would increase to 2.3 million tonnes level in 2009.