- Base metals strengthen on improved smelter utilisation
- Precious metals trends mixed, with gold seeing sharp correction
Japan Metal Daily: Japan’s major non-ferrous smelters have announced production guidance for H1 FY’26, indicating a broad-based increase in base metals output, led by copper, zinc and lead, while precious metals remain under pressure.
Copper
Production plans from six smelters indicate total electric copper output at around 761,000 t, up 3.3% y-o-y, with four companies targeting higher volumes.
Pan Pacific Copper (PPC) is expected to increase output, supported by earlier production cuts at JX Metal Smelting due to deteriorating mining conditions. Sumitomo Metal Mining is also likely to raise output compared to the previous fiscal year, when regular maintenance was carried out at the Toyo plant in Ehime Prefecture.
In contrast, Mitsubishi Materials plans to reduce production due to lower copper concentrate processing at the Ona Hama smelter in Fukushima Prefecture. Meanwhile, Nippon Steel Mining and Furukawa Machinery and Metal are expected to maintain output at levels similar to last year. DOWA Holdings plans to increase production through higher raw material processing.
Zinc
Zinc production from two companies is projected at around 198,000 t, reflecting a 6.3% y-o-y increase. Mitsui Mining and Smelting is expected to see an overall rise in output, despite large-scale maintenance at the Hachinohe smelter until early May, with higher production planned at Kamioka Mining and Hikoshima smelting operations.
At the same time, DOWA Holdings is also expected to increase zinc output, supported by improved raw material supply conditions compared to the previous year.
Lead
Lead production from four companies is expected to reach near 100,000 t, up 6.4% y-o-y. Toho Zinc is likely to increase output following a recovery from operational issues at the Kishima smelter in Hiroshima Prefecture during the same period last year.
Additionally, Mitsubishi Materials and DOWA Holdings are also planning to increase lead production.
Precious metals diverge
Gold production across seven companies is projected to decline to around 26,000 kg, down 15.7% y-o-y, with five companies planning output cuts. In contrast, silver production from eight companies is expected to reach near 630,000 kg, with five companies targeting higher output.
Company focus: Toho Zinc
Toho Zinc, a key Japanese producer of zinc and lead, has announced its H1 FY’26 production plan with lead output expected to rise by 15.2% y-o-y to 45,700 t, while silver production is projected to increase by 12.8% y-o-y to 123 t.
On the other hand, in the near term (H2 FY’25), lead is expected to be 30,980 t and silver is expected to be 139 t.
Overall, the production outlook highlights improving base metals supply fundamentals, while gold output remains under pressure, pointing to a divergence within the non-ferrous segment.
Note: This article has been written in accordance with a content exchange agreement between BigMint and Japan Metal Daily.
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