What’s going on here?
Kazakhstan’s metals industry is having a mixed start to 2025 – copper and aluminum are growing steadily, steel production is robust, but gold and silver outputs are on the decline.
What does this mean?
In January, Kazakhstan’s refined copper production rose by a modest 0.1% year-on-year, remaining steady at 42,669 metric tons despite global economic pressures. On the other hand, refined zinc output fell by 3.1% after a sharp increase in December 2024. Alumina and unwrought aluminum grew by 2.0%, hitting 155,515 metric tons, spurred by persistent global demand. There’s a 5.1% boost in ferro-alloys production, marking 190,677 metric tons, while crude steel surged by 21.5% to 359,399 metric tons – indicating significant expansion. Nonetheless, the precious metals domain is struggling: gold and silver production plunged by 32.8% and 52.9%, respectively, hinting at supply or demand issues. Key players like KAZ Minerals and Glencore’s Kazzinc remain influential in market trends.
Why should I care?
For markets: Mixed results for metals demand strategies.
Kazakhstan’s industrial metals are showing positive growth, yet there’s a worrying decline in gold and silver production. These variations might impact market volatility and investment strategies in metals. Companies leading in steel and aluminum could draw substantial interest, while precious metals might push investors toward more cautious or alternative solutions.
The bigger picture: Balancing resilience and challenges in Kazakhstan’s export performance.
Kazakhstan’s mixed metals production underscores its dual position as a strong global exporter and a sector with definite hurdles. With solid performance in base and industrial metals against dropping precious metal output, the focus could shift towards sectors offering higher demand and more stable returns. This could reshape regional economic strategies and influence global trade relationships.
