Top copper miners' output inches up 0.2% YOY in Q4 2023

The combined output of the 20 largest copper producers inched up 0.2% year over year and rose 2.2% quarter over quarter in the fourth quarter of 2023, S&P Global Market Intelligence data showed.

Consolidated copper production for the top 20 miners analyzed by Market Intelligence totaled 3.562 million metric tons, slightly up from 3.555 MMt recorded in the same period a year ago. Eleven of the top copper miners reported higher year-on-year production in the fourth quarter of 2023.

The increase in production comes as copper and other industrial metals benefit from "growing demand optimism" due to several macroeconomic factors, Ole Hansen, head of commodity strategy at Saxo Bank, said in a Feb. 22 note.

"The industrial metal sector, led by nickel and copper, is currently heading for its best two-week run of gains since December [2023] supported by growth optimism in China and the potential threat to supply from additional sanctions against Russia," Hansen said.

Copper prices are expected to increase in 2024 amid a projected supply deficit, S&P Global Commodity Insights analyst Ruilin Wang said Feb. 28.

BHP Group Ltd. emerged as the top copper producer in the analysis, with its output increasing 3.1% year over year to 437,400 metric tons in the fourth quarter of 2023. It was also the only miner in the top five that booked higher production from the previous year. Codelco, Freeport-McMoRan Inc., Glencore PLC and Grupo México SAB de CV all reported lower output compared with the prior-year quarter.

Lundin Mining Corp.'s copper production soared 82.7% year over year to a record 103,337 metric tons in the fourth quarter of 2023 — the largest jump among the top copper miners. The increase was driven by the miner's 2023 acquisition of a majority interest in the Caserones copper mine in Chile.

Teck Resources Ltd. and Hudbay Minerals Inc. also posted significant production gains, reporting output increases of 58.3% and 55.1%, respectively.

* Read the latest metal price consensus forecasts. * Check the market cap movements of the top miners in February.

Sumitomo Metal Mining Co. Ltd. booked the largest percentage drop among the top copper miners, with its output declining 26.7%. First Quantum Minerals Ltd.'s copper production sank 22.2% following the government-ordered closure of the Cobre Panama mine in Panama.