Sumitomo Metal will trim production of copper

Sumitomo Metal Mining Co., the second largest copper producer in Japan, plan to cut production in the quarter I/2009 economic recession in the middle of the lower demand for steel. Copper prices plunged more than 60% from record high prices in July along with the economic recession that came from the United States (U.S.) and Europe, and are now crawling to countries in Asia. 

Pan Pacific Copper Co., the largest steel company in Japan, is also the possibility of lowering production to 20% in the next year because of the crisis affected the world economy. This was disclosed by Nippon Mining & Metals Co., a company that has a 66% share in the joint venture company, at the beginning of this month. 

In his statement last October, Sumitomo Metal plans to produce 389,268 tons of copper and 57,688 tons of nickel, including Ferro-nickel, in the 12 months that ended on 31 March 2009. Yesterday, executive officer of Sumitomo Mikinobu Ogata stated to Reuters that the government will reduce production in the quarter I/2009. 

In London Metal Exchange (LME), the price of copper for delivery three months ahead rose to 8.4%, or U.S. $ 255 to U.S. $ 3,305 per ton, equivalent to U.S. $ 1.50 per pound.
Source: by: M. Tahir Saleh & www.Kompas.com

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