Recent data from satellite surveillance of metal processing plants has revealed a higher number of inactive global copper smelters in the first two months of 2024 compared to the same period last year, primarily due to decreased activity in China. Earth-i, a company specializing in observational data, reported that an average of 11.5% of monitored copper smelter capacity remained inactive in January and February, up from 8.6% in the corresponding period of the previous year. Notably, Chinese smelters saw a significant increase in inactive capacity, rising from 4.8% to 8.3%, with facilities such as Baotou and Kunming reported as non-operational. This trend in China has been attributed to plummeting processing fees for copper concentrate, reaching historic lows due to supply shortages. However, industry experts anticipate a potential recovery in the second quarter with the onset of maintenance season. While no major developments were observed outside of China, minor outages were noted at Australia’s Olympic Dam and Chile’s Chuquicamata in mid-February. The shifting dynamics in global copper smelting activity underscore the intricate interplay of market forces, supply chain disruptions, and regional operational challenges impacting the industry.
Global Copper Smelters Experience Reduced Activity in Early 2024, Particularly in China