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UPDATE 1-Mexico copper sees biggest drop in 2 yrs on slowing demand
December 18, 2012 / 3:25 PM / 5 years ago

UPDATE 1-Mexico copper sees biggest drop in 2 yrs on slowing demand

MEXICO CITY, Dec 18 (Reuters) - Mexican copper output
suffered its biggest single-month fall in two years in October
and was down 4.7 percent from the same month a year ago, as
slowing global demand affected production, the national
statistics institute said on Tuesday. 
    Silver production rose to 368,787 kilograms in October, up
3.6 percent, according to data from INEGI, the national
statistics institute. 
    The fall in copper was caused by lower prices and slowing
demand from major copper consumers like China, said Gonzalo
Fernandez, an analyst with Grupo Santander in Mexico City.
    "Copper is very price sensitive," he said. "When prices are
high, some mines produce a lot, and when it's low, those mines
produce less."
    "There's been a slight deceleration in China, and a slight
global deceleration, and that can be seen in global copper
consumption," he added. 
    Fernandez nonetheless expects copper production to rebound
when November and December output data is released.
    Mexican copper production has mainly been positive this
year, with output rising more than 40 percent in February. 
    Output plummeted during a three-year-long strike at Grupo
Mexico's massive Buenavista mine that ended in
2010 after the company won a court battle against the mining
union.
    The mine, formerly known as Cananea, is now operational.
    
    A breakdown of metals production follows: 
  Product        Oct 2012       Pct Chge
                               vs yr ago
    Gold        6,612 kgs         +0.1
   Silver    368,787 kgs          +3.6
                               
    Lead     14,155 tonnes       +14.6
                               
  Copper     35,472 tonnes        -4.7
                               
    Zinc     35,918 tonnes        +5.1

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