What's Happening?
Earth-i's SAVANT Global Copper Monitoring Index has reported a significant increase in inactive global smelting capacity, reaching 14.3% in January, the highest since monitoring began nearly a decade ago. This marks a 2.5% decline from December 2025,
with the inactive capacity reading being the first in seven years to register double figures for January. The underperformance is largely attributed to regions outside China, where 45% of the capacity is monitored. Asia and Oceania, in particular, have seen a substantial impact due to the closure of the Isabel Leyte plant in the Philippines and temporary shutdowns in Indonesia following a mud rush incident. Despite this, Asia and Oceania recorded a month-on-month increase in smelting activity.
Why It's Important?
The increase in inactive smelting capacity highlights challenges in the global copper supply chain, which could have significant implications for industries reliant on copper. The disparity between China's smelting activity and the rest of the world underscores regional vulnerabilities and the potential for supply disruptions. This situation could lead to increased copper prices, affecting manufacturing and construction sectors globally. The data provided by Earth-i's SAVANT platform offers critical insights for stakeholders in the mining and metals industries, enabling them to make informed decisions in response to these trends.
What's Next?
Moving forward, stakeholders in the copper industry will need to address the factors contributing to inactive smelting capacity, particularly in regions outside China. This may involve investments in infrastructure and technology to enhance operational efficiency and resilience. Additionally, monitoring and analysis of smelting activities will continue to be crucial in anticipating and mitigating potential supply chain disruptions. The industry may also see increased collaboration between governments and private entities to stabilize and optimize copper production and distribution.
