Japan's base metals production drops in FY'23, zinc at 57-year low

Japan's preliminary production data from the Ministry of Economy, Trade and Industry for financial year 2023 (FY2023) revealed a notable 4.9% y-o-y decrease in base metals production, marking a record decline. Despite this, production volumes remained robust, surpassing 1.5 million tonnes (mnt). Zinc experienced its second consecutive annual decline, dropping below 500,000 tonnes (t) for the first time in 57 years. Electrolytic lead similarly saw a fourth consecutive year of decline, hitting a 55-year low.

Electrolytic copper production experienced a 4.9% y-o-y decrease to 1,509,191 t, marking the first decline in two years, primarily attributed to maintenance work at select smelters. Conversely, shipments rose by 1% to 1,456,886 t, marking the second consecutive year of increase. The elevated shipment levels were propelled by strong export performance, reaching the second-highest level on record.

Zinc production reached 489,030 t, down by 4% y-o-y, with shipments totalling 495,259 t, marking a 1.3% decrease compared to the previous year. Both production and shipments experienced a second consecutive year of decline. While exports remained high, matching the previous year's levels, sales of galvanized steel sheets, a primary product, struggled to gain traction. Production falling below the 500,000 t threshold for the first time in 57 years, dating back to 1966, was attributed to production adjustments amid declining domestic demand.

In the electrolytic lead sector, production reached 181,267 t, experiencing a 3.8% y-o-y decline, extending its downward trajectory for the fourth consecutive year. Shipments amounted to 175,351 t, down by 4.5% compared to the previous year, marking the third consecutive year of decrease.

In contrast, March witnessed a continuation of positive trends in electrolytic copper production, with a second consecutive monthly increase to 134,533 t, up by 6.2% from the previous year. Shipments similarly rose for the third straight month, reaching 125,332 t, marking a 3.8% increase from the same month last year. Production levels remained consistently high, surpassing 130,000 t for the third consecutive month.

Zinc production rose for the second consecutive month, reaching 44,503 t, marking an 11.2% y-o-y increase. Shipments also continued their upward trend for the third consecutive month, reaching 45,232 t, reflecting a 7.6% y-o-y increase. Notably, this marks the first instance in 15 months where shipments have surpassed the 45,000 t mark.

In the electrolytic lead sector, production fell to 12,239 t, down by 12.7% compared to the previous year, marking the first decrease in five months. Shipments also experienced a decline, totalling 14,574 t, down by 8.8% y-o-y, the first decrease in three months. Production levels reached a nine-month low.

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