Japan: Base metals production shows mixed trends in FY'22

The Ministry of Economy, Trade and Industry (METI), Japan, has released a preliminary report on Current Production Statistics, revealing that in the fiscal year of 2022 (April 2022 to March 2023), the production of base metals saw mixed results.

Electrolytic copper production recorded a year-on-year (y-o-y) increase, while zinc and electrolytic lead witnessed a decrease. This was mainly due to the fact that domestic smelters operated under favorable conditions throughout the year. As a result, sales of electrolytic copper reached a record high, surpassing the numbers of the past 15 years since financial year 2007 (FY'07).

In the fiscal year of 2022, the production of electrolytic copper witnessed a y-o-y increase of 5.6%, reaching 1,586,820 t. This surpassed the previous year's level for the first time in two years and also broke the previous record high of 1,581,822 t in FY'07. The smooth operation of domestic smelters without any significant operational problems or regular maintenance contributed to the consistent high production levels.

In fact, production levels remained high throughout the year, surpassing the same month of the previous year for 12 consecutive months until February. In contrast, shipments of electrolytic copper also recorded a y-o-y increase of 5.3%, reaching 1,442,167 t, due to the recovery in exports. This marks the highest level of shipments in five years since FY'18.

In the fiscal year of 2022, the production and shipments of zinc witnessed a decline. Production of zinc reached 509,264 t, marking a y-o-y decrease of 1.7%. Shipments of zinc also recorded a decline of 2.3% y-o-y, reaching 501,711 t. This marks the first time in two years that both production and shipments of zinc witnessed a decline. The production volume remained stagnant at the same level as in FY'20, when the pandemic resulted in sluggish sales of galvanized steel sheets, which is the primary product of zinc.

Similarly, the production volume of electrolytic lead decreased for the third consecutive year, reaching 188,358 t, which is a y-o-y decrease of 3.6%. Shipments of electrolytic lead also decreased for the second consecutive year, reaching 183,569 t, which is a y-o-y decrease of 2%. This marks the first time when production of electrolytic lead dropped below the 190,000 t level since the Heisei era.

On the other hand, in the single month of March, electrolytic copper production was 129,020 t, down 2.4% y-o-y. Interestingly enough, production dropped for the first time in 13 months, and shipments were 120,780 t, up 7.4% y-o-y, the second consecutive month of increase. Zinc production was 40,021 t, down 15.1% y-o-y, down for the second consecutive month, and shipments were 42,018 t, down 11.2%, the first decline in two months. Production volume of electrolytic lead was 14,025 t, down 15.2% y-o-y, down for the second consecutive month. Shipments were 15,981 t, up 5.1% y-o-y, the first increase in two months.

Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.