IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v49y2016icp112-118.html
   My bibliography  Save this article

Production costs of the non-ferrous metals in the EU and other countries: Copper and zinc

Author

Listed:
  • Boulamanti, Aikaterini
  • Moya, Jose Antonio

Abstract

Our study compares production costs of the non-ferrous metals (NFM) industry in the European Union (EU) and other countries in order to understand whether these costs are higher in Europe. Our analysis focuses on copper and zinc, since they are considered to be the most greatly consumed non-ferrous metals after aluminium. The countries selected for comparison depend on the metal and are based on high shares of extra-EU28 trade and/or of global installed capacity. A bottom-up approach has been followed, based on information at facility level for primary production of the two metals. The analysis includes 32 copper smelters, 34 copper refineries and 23 zinc smelters, representing 72%, 58% and 30% of global production of copper anodes, cathodes and zinc slab respectively. Taking into consideration the complex structure of the industry, costs are broken down to three components: (1) Energy, (2) Labour and other costs (salaries, consumables and other on-site costs) and (3) Credits (due to co-products). Our findings suggest that although interesting observations emerge in each of these components, overall costs compare more favourably among countries than initially thought. The EU industry does not have the highest production costs. On the contrary, especially in the case of copper refineries and zinc, it has lower production costs than most of the countries included in the study.

Suggested Citation

  • Boulamanti, Aikaterini & Moya, Jose Antonio, 2016. "Production costs of the non-ferrous metals in the EU and other countries: Copper and zinc," Resources Policy, Elsevier, vol. 49(C), pages 112-118.
    • Handle: RePEc:eee:jrpoli:v:49:y:2016:i:c:p:112-118
    DOI: 10.1016/j.resourpol.2016.04.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420716300824
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2016.04.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lucio, Nilson Rogerio & Lamas, Wendell de Queiroz & de Camargo, Jose Rubens, 2013. "Strategic energy management in the primary aluminium industry: Self-generation as a competitive factor," Energy Policy, Elsevier, vol. 59(C), pages 182-188.
    2. Söderholm, Kristina & Söderholm, Patrik & Helenius, Heidi & Pettersson, Maria & Viklund, Roine & Masloboev, Vladimir & Mingaleva, Tatiana & Petrov, Viktor, 2015. "Environmental regulation and competitiveness in the mining industry: Permitting processes with special focus on Finland, Sweden and Russia," Resources Policy, Elsevier, vol. 43(C), pages 130-142.
    3. Adams, F. Gerard & Duroc-Danner, Bernard, 1987. "Measuring competitive costs in non-ferrous metal production : The case of aluminium," Resources Policy, Elsevier, vol. 13(3), pages 166-174, September.
    4. David Hu, S. & Zandi, Iraj, 1979. "The economics of energy conservation policies : A study of US primary copper production," Energy Economics, Elsevier, vol. 1(3), pages 173-179, July.
    5. Demailly, Damien & Quirion, Philippe, 2008. "European Emission Trading Scheme and competitiveness: A case study on the iron and steel industry," Energy Economics, Elsevier, vol. 30(4), pages 2009-2027, July.
    6. Meleo, Linda, 2014. "On the determinants of industrial competitiveness: The European Union emission trading scheme and the Italian paper industry," Energy Policy, Elsevier, vol. 74(C), pages 535-546.
    7. Makridou, Georgia & Andriosopoulos, Kostas & Doumpos, Michael & Zopounidis, Constantin, 2016. "Measuring the efficiency of energy-intensive industries across European countries," Energy Policy, Elsevier, vol. 88(C), pages 573-583.
    8. Scholtens, Bert & Yurtsever, Cenk, 2012. "Oil price shocks and European industries," Energy Economics, Elsevier, vol. 34(4), pages 1187-1195.
    9. Yanjia, Wang & Chandler, William, 2010. "The Chinese nonferrous metals industry--energy use and CO2 emissions," Energy Policy, Elsevier, vol. 38(11), pages 6475-6484, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lerede, D. & Bustreo, C. & Gracceva, F. & Saccone, M. & Savoldi, L., 2021. "Techno-economic and environmental characterization of industrial technologies for transparent bottom-up energy modeling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 140(C).
    2. Mariusz Cholewa & Luan Huynh Ba Minh, 2021. "PLM Solutions in the Process of Supporting the Implementation and Maintenance of the Circular Economy Concept in Manufacturing Companies," Sustainability, MDPI, vol. 13(19), pages 1-28, September.
    3. Yahya, Muhammad & Ghosh, Sajal & Kanjilal, Kakali & Dutta, Anupam & Uddin, Gazi Salah, 2020. "Evaluation of cross-quantile dependence and causality between non-ferrous metals and clean energy indexes," Energy, Elsevier, vol. 202(C).
    4. Gong, Xu & Xu, Jun & Liu, Tangyong & Zhou, Zicheng, 2022. "Dynamic volatility connectedness between industrial metal markets," The North American Journal of Economics and Finance, Elsevier, vol. 63(C).
    5. Mensi, Walid & Nekhili, Ramzi & Vo, Xuan Vinh & Kang, Sang Hoon, 2021. "Quantile dependencies between precious and industrial metals futures and portfolio management," Resources Policy, Elsevier, vol. 73(C).
    6. Gondia Sokhna Seck & Emmanuel Hache & Clement Bonnet & Marine Simoën & Samuel Carcanague, 2020. "Copper at the crossroads : Assessment of the interactions between low-carbon energy transition and supply limitations," Post-Print hal-03118509, HAL.
    7. Clément Bonnet & Gondia Sokhna Seck & Emmanuel Hache & Marine Simoën & Samuel Carcanague, 2019. "Copper at the Crossroads," Working Papers hal-03192499, HAL.
    8. Harald Ulrik Sverdrup & Anna Hulda Olafsdottir, 2020. "Conceptualization and parameterization of the market price mechanism in the WORLD6 model for metals, materials, and fossil fuels," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(3), pages 285-310, October.
    9. Kim, Kihyung, 2020. "Jointly produced metal markets are endogenously unstable," Resources Policy, Elsevier, vol. 66(C).
    10. Guo, Jianxin & Tan, Xianchun & Zhu, Kaiwei & Cheng, Yonglong, 2024. "Integrated management of abatement technology investment and resource extraction," Resources Policy, Elsevier, vol. 92(C).
    11. Zhao, Guimei & Li, Wenxiu & Geng, Yong & Bleischwitz, Raimund, 2023. "Uncovering the features of global antimony resource trade network," Resources Policy, Elsevier, vol. 85(PA).
    12. Fattahi, Mohammad & Mosadegh, Hadi & Hasani, Aliakbar, 2021. "Sustainable planning in mining supply chains with renewable energy integration: A real-life case study," Resources Policy, Elsevier, vol. 74(C).
    13. C. A. Tapia Cortez & J. Coulton & C. Sammut & S. Saydam, 2018. "Determining the chaotic behaviour of copper prices in the long-term using annual price data," Palgrave Communications, Palgrave Macmillan, vol. 4(1), pages 1-13, December.
    14. Ciner, Cetin & Lucey, Brian & Yarovaya, Larisa, 2020. "Spillovers, integration and causality in LME non-ferrous metal markets," Journal of Commodity Markets, Elsevier, vol. 17(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boulamanti, Aikaterini & Moya, Jose A., 2017. "Production costs of the chemical industry in the EU and other countries: Ammonia, methanol and light olefins," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1205-1212.
    2. Lin, Weiming & Chen, Jianling & Zheng, Yi & Dai, Yongwu, 2019. "Effects of the EU Emission Trading Scheme on the international competitiveness of pulp-and-paper industry," Forest Policy and Economics, Elsevier, vol. 109(C).
    3. Chang, Kai & Zhang, Chao & Chang, Hao, 2016. "Emissions reduction allocation and economic welfare estimation through interregional emissions trading in China: Evidence from efficiency and equity," Energy, Elsevier, vol. 113(C), pages 1125-1135.
    4. Moreno, Blanca & García-Álvarez, María Teresa & Fonseca, Ana Rosa, 2017. "Fuel prices impacts on stock market of metallurgical industry under the EU emissions trading system," Energy, Elsevier, vol. 125(C), pages 223-233.
    5. Makridou, Georgia & Doumpos, Michalis & Galariotis, Emilios, 2019. "The financial performance of firms participating in the EU emissions trading scheme," Energy Policy, Elsevier, vol. 129(C), pages 250-259.
    6. Zhang, Cheng & Wang, Qunwei & Shi, Dan & Li, Pengfei & Cai, Wanhuan, 2016. "Scenario-based potential effects of carbon trading in China: An integrated approach," Applied Energy, Elsevier, vol. 182(C), pages 177-190.
    7. Ke Zhang & Xingwei Wang, 2021. "Pollution Haven Hypothesis of Global CO 2 , SO 2 , NO x —Evidence from 43 Economies and 56 Sectors," IJERPH, MDPI, vol. 18(12), pages 1-27, June.
    8. Fang, Sheng & Lu, Xinsheng & Li, Jianfeng & Qu, Ling, 2018. "Multifractal detrended cross-correlation analysis of carbon emission allowance and stock returns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 509(C), pages 551-566.
    9. Veith, Stefan & Werner, Jörg R. & Zimmermann, Jochen, 2009. "Capital market response to emission rights returns: Evidence from the European power sector," Energy Economics, Elsevier, vol. 31(4), pages 605-613, July.
    10. Emilie Alberola & Julien Chevallier & Benoît Chèze, 2008. "The EU Emissions Trading Scheme : Disentangling the Effects of Industrial Production and CO2 Emissions on Carbon Prices," Working Papers hal-04140795, HAL.
    11. Kayani, Umar Nawaz & Hassan, M. Kabir & Moussa, Faten & Hossain, Gazi Farid, 2023. "Oil in crisis: What can we learn," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    12. Anger, Niels & Oberndorfer, Ulrich, 2008. "Firm performance and employment in the EU emissions trading scheme: An empirical assessment for Germany," Energy Policy, Elsevier, vol. 36(1), pages 12-22, January.
    13. Zhu, Bangzhu & Jiang, Mingxing & He, Kaijian & Chevallier, Julien & Xie, Rui, 2018. "Allocating CO2 allowances to emitters in China: A multi-objective decision approach," Energy Policy, Elsevier, vol. 121(C), pages 441-451.
    14. Stavros Degiannakis, George Filis, and Renatas Kizys, 2014. "The Effects of Oil Price Shocks on Stock Market Volatility: Evidence from European Data," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    15. Stede, Jan & Pauliuk, Stefan & Hardadi, Gilang & Neuhoff, Karsten, 2021. "Carbon pricing of basic materials: Incentives and risks for the value chain and consumers," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 189.
    16. Tang, Ling & Wu, Jiaqian & Yu, Lean & Bao, Qin, 2017. "Carbon allowance auction design of China's emissions trading scheme: A multi-agent-based approach," Energy Policy, Elsevier, vol. 102(C), pages 30-40.
    17. Venmans, Frank, 2012. "A literature-based multi-criteria evaluation of the EU ETS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5493-5510.
    18. Sato, Misato & Dechezleprêtre, Antoine, 2015. "Asymmetric industrial energy prices and international trade," Energy Economics, Elsevier, vol. 52(S1), pages 130-141.
    19. Liu, Cenjie & Fang, Jiayu & Xie, Rui, 2021. "Energy policy and corporate financial performance: Evidence from China's 11th five-year plan," Energy Economics, Elsevier, vol. 93(C).
    20. Panagiotis Fotis & Michael Polemis, 2018. "Sustainable development, environmental policy and renewable energy use: A dynamic panel data approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 26(6), pages 726-740, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:49:y:2016:i:c:p:112-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.