Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Boliden has reported double-digit increases in zinc, lead, and nickel production in Q2. Copper output also increased during the quarter.


The Swedish miner witnessed declines in metal consumption and demand during the quarter owing to the pandemic-related restrictions globally. However, the company said in its earnings release on Wednesday that demand in China recovered during this period. The operations suspensions at mines and smelters worldwide limited the company’s volume of production of both ores and metal it said.


During the first six months of the year, Boliden’s consolidated zinc and nickel ore volumes from its six mines dipped by 3pc and 2pc to 137,517mt and 5,305mt, respectively, from H1 2019. Copper and lead production was relatively flat at 63,135mt and 26,362mt during the same period under comparison.


In Q2 2020, concentrated zinc production rose by 12pc to 73,950mt from the same quarter last year. Concentrated nickel, lead, and copper output rose by 19pc, 12pc, and 6pc to 2,670mt, 13,882mt, and 34,076mt, respectively. 


Consolidated copper and zinc output from its five smelters rose by 18pc and 1pc to 188,251mt and 244,714mt, respectively, during the first six months of 2020 from H1 2019, while nickel and lead production dropped by 7pc and 1pc to 14,238mt and 39,329mt, respectively, during the same period under comparison. 


During the second quarter, copper production surged by 28pc to 93,007mt from Q2 2019 and nickel production rose by 4pc to 7,114mt from the same quarter last year. Zinc and lead volumes, however, fell by 2pc and 12pc to 117,418mt and 7,114mt, respectively. 


Maintenance shutdowns of some of the smelters during the year are estimated to have reduced operating profits by SEK300mn ($33.8mn). 


For the six months ended June 31, 2020, the company declared an operating profit of SEK3.2bn ($364.5mn). Profits were down 22pc from the same period last year. The company also noted a 58pc decline in volumes of ore and metals traded in the first half of 2020.

Leave a Reply

Your email address will not be published.