| Xstrata copper has shut its Kidd Creek smelter in northern Ontario through mid-June because of slumping demand for sulfuric acid, which it produces as a byproduct when smelting copper concentrate into metal.
"Since January, we have experienced a significant drop in sales of sulfuric acid, due to weak demand," says Thompson Hickey, general manager of Xstrata's Kidd copper and zinc plants at Kidd Creek in a statement. "An ongoing negative outlook on sales requires that we adjust our operating plans to further reduce our acid production to meet this current reality." The firm will continue to produce copper at its Horne smelter in Quebec.
A company spokesman tells Reuters that the smelter produced 550,000 metric tons of acid last year alongside 124,000 metric tons of copper cathode. "We've seen since January a rising issue with sulfuric acid inventories, because there's a sharp drop in demand," he said. Sulfuric acid demand and prices have slumped in the past year as the global economic slump has slowed activity in such consuming industries as fertilizers, steelmaking, and mining. Purchasingdata.com has reported that sulfuric acid prices have dropped more than $100/ton since September when they traded at $390/ton. In the latest survey, sulfuric acide prices were in the $287 range. |
