Marginal Shift in Copper Dynamics
KGHM, a major player in the copper industry, experienced a slight 1% drop in its copper sales in September, descending to 60.9k tons. This reduction parallels a minimal decline in production, with payable copper falling from 59.5k tons to 59.4k tons compared to the same period last year, as disclosed in their recent market announcement.
Sales Dwindle Across Specific Divisions
This downward trend in copper sales specifically impacted KGHM International and Sierra Gorda in September, indicating variances in operational dynamics or market demand within these sectors.
Nine-Month Overview Reveals Broader Sales Dip
Evaluating the broader timeframe from January to September 2023, the KGHM Group’s cumulative payable copper production was reported at 527.3 thousand tons, a noticeable decrease from 557.5 thousand tons in the prior year. Sales also shrank during this period, dropping to 531 thousand tons from 536.8 thousand tons previously.
Operational Highlights and Silver Production
Despite these challenges in the copper segment, KGHM Polska Miedz Group’s production largely adhered to budget expectations, achieving 99 percent of its copper production targets for the first nine months of 2023. Interestingly, silver production surpassed budget estimates, increasing by 7%. In September alone, payable silver production saw a significant 20% year-on-year rise, reaching 126.5 tons. However, silver sales weren’t as robust, experiencing an 11% contraction year-on-year, settling at 104 tons. This discrepancy between production and sales figures suggests potential strategic stockpiling or market fluctuations affecting trade dynamics.