Global copper smelting fell for the first time in four months in February due to lower activity of plants outside the world’s top copper refiner China, data from satellite surveillance showed on Wednesday.
Earth-i, which specialises in observational data, tracks smelters representing up to 95% of global production for its SAVANT service and sells data to fund managers, traders and miners.
Last month, an average of 8.8% of global copper smelter capacity monitored was inactive, up from 8.6% in January, the company said in a statement. The change was driven mainly by Europe, Asia (excluding China) and Oceania.
“Nevertheless, smelting activity remains strong, defying prevailing market conditions for treatment and refining charges (TC/RCs),” Earth-i said.
Smelter inactivity in China, home to over 40% of capacity covered by its services, fell for the fourth consecutive month to 5.5%, the lowest since March 2023.
“While this is consistent with seasonal patterns and the uptick in economic activity that comes with the spring thaw in the northern hemisphere, it is remarkable given TC/RCs at record lows for the annual benchmark and spot market terms that are now widely marked in negative territory.”
Chinese copper smelters, which typically shut down for maintenance in April-May, have been hit by tight copper concentrate supply due to rising smelting capacity.
(Reporting by Polina Devitt; Editing by Tomasz Janowski)
