Mitsubishi Materials Corp. will cease processing of copper and copper alloy strips at its Ryoshindoh Manufacturing Sdn. Bhd. operation in Malaysia, citing market conditions and the country's tight restrictions on scrap exports.
Slitting and sales operations at Ryoshindo are scheduled to end in March 2027. The decision will allow Mitsubishi Materials to reduce inventories and reallocate resources to growth areas, including high-performance copper alloys and materials for data centers, the Japan-based company said Oct. 28.
"The group concluded that optimizing its production and logistics functions would strengthen competitiveness, improve capital efficiency and enhance corporate value over the medium to long term," Mitsubishi Materials said in a statement.
The planned shutdown comes amid a tight copper market in Asia. Platts, part of S&P Global Energy, assessed the Chinese copper import premium CIF China at $180/metric ton over the London Metal Exchange cash price on Oct. 29 for LME-registered normal brands of electrolytically refined cathode. This represents a 30.4% increase from Oct. 21 and the highest level since Platts started the assessment in August 2014.
Ryoshindo has served as a Mitsubishi Materials supply base for the Southeast Asian market since the operation was established in 1995.
