Pan Pacific Copper to Keep 10% Cu Production Cut Up to 1 Year

Japanese largest copper smelter, Pan Pacific Copper decided to continue production cut of electrolytic copper ingot in and after April. The firm already reduces the production by 10% from original plan since January. However, the demand for electric wire and rolled copper products decreases due to slower economy. The firm would keep the production cut through March 2010 if the domestic demand would keep current low level.

Pan Pacific Copper, in which Nippon Mining & Metals and Mitsui Mining & Smelting has interests, makes annual 600,000 tonnes of copper ingot at Saganoseki smelter and refinery in Oita, Hitachi plant in Ibaraki and joint venture, Hibi Kyodo Smelting’s Tamano smelter in Okayama. If the firm would keep 10% production cut for a year, the reduction would be around 60,000 tonnes.

Domestic copper consumption is very low level when automakers and appliances makers reduce the production and the parts makers reduce the inventory. Nippon Mining & Metals’ metal processing plant in Kanagawa stopped the operation for 16 days per month in January and February.