Aurubis Faces Copper Concentrate Challenges as Recycling Output Rises

Aurubis

Copper concentrate tightness impacts European smelters

Aurubis, Europe’s largest copper producer and recycler, reported a 6% drop in earnings before taxes (EBT) in the first half of its fiscal year, citing lower copper concentrate throughput and rising costs. The Focus Keyphrase Aurubis copper concentrate throughput reflects the core challenge affecting its primary smelting operations.

Recycling division offsets smelter downturn

Aurubis EBT fell to €229 million ($259 million) for the six months ending March, mainly due to reduced copper concentrate throughput and weaker treatment and refining charges. The Hamburg smelter saw a 14% throughput drop, while Pirdop declined 1%. Global demand—especially from Chinese smelters—tightened the concentrate market, pushing Aurubis overall primary throughput down 7% year-on-year to 1.2 million tonnes.

However, copper cathode production remained steady at 557,000 tonnes for the October–March period. While smelting output declined 1% to 301,000 tonnes, the recycling division grew 1% to 256,000 tonnes. Lunen's plant in Germany led the recycling surge with an 18% output jump. This partially offset a 5% decline at Olen in Belgium.

Outlook and planned maintenance

Aurubis expects stable demand for copper cathodes going forward. However, upcoming planned maintenance at Pirdop (mid-May to mid-July) and at Lunen this month could slightly constrain short-term output. Still, the company continues to rely on its recycling performance to mitigate supply-side risks from the copper concentrate market.

The Metalnomist Commentary

Aurubis’ earnings decline underscores the vulnerability of traditional smelting operations to concentrate supply shocks. Yet the firm’s recycling assets are proving resilient. This highlights the strategic importance of secondary copper sources in a tightening global supply landscape.