Global copper smelting activity experienced its most substantial decline since May 2023, according to geospatial intelligence firm Earth-i. Their SAVANT Global Copper Monitoring Index revealed a rise in the global inactive capacity index from 8.8% in February to 12.6% in March. This downturn reflects unprecedented market conditions, including negative treatment and refining charges. Custom smelters, reliant on third-party raw materials, saw a steeper activity fall of 6.6% compared to the 0.2% drop in captive smelters integrated with mining assets.
In China, the typical Q2 maintenance season arrived early, with several operators opting for shutdowns due to unfavorable market conditions, contributing to a 4.5% increase in the country’s inactivity capacity, reaching 9.6%. Outside China, copper smelting activity also decreased, with the inactivity capacity index rising by 3.4% to 14.9%. The closure of Glencore’s Isabel Leyte smelter significantly contributed to this decline. North America witnessed the most dramatic change, with its regional inactivity series surging from 21.5% to 43.8% due to operational pauses at Freeport-McMoRan’s Miami smelter and Rio Tinto’s Garfield plant. Activity also fell in South America and Europe.
