Copper ore production stable in Q2 – Commerzbank

According to the International Copper Study Group, about 11.1 million tons of copper ore were produced in the first half of this year, up 3.1 percent from the same period last year. However, this growth is entirely attributable to the first quarter of this year, notes Commerzbank analyst Barbara Lambrecht.

Manufacturers are responding to the expected increase in demand

“In the second quarter, however, production did not increase compared to the second quarter of last year. As a result, primary copper production from ores has increased more than mining production over the past three months. This will likely lead to lower refined copper production in the coming months as this will put pressure on copper smelter margins.”

“At the same time, a major mining company and the Zambian government independently announced last week that they plan to significantly expand copper ore production in the coming years. The mining company is currently considering doubling production at an Australian mine from the current 322,000 tonnes to 650,000 tonnes by early 2030.

“Meanwhile, in Zambia, the government plans to increase production from around 760,000 tonnes in 2023 to 3 million tonnes by 2031. The long-term expansion in production shows that producers are responding to the expected significant increase in copper demand as part a green transformation. In the short term, however, the shortage of copper ore is more of a limiting factor.”