ICSG Bulletin: Refined Copper Market Surplus Shrinks to 15 kt

SPOKANE (Scrap Monster): The International Copper Study Group (ICSG) has announced the release of its August 2017 Copper Bulletin that provides preliminary copper data for the month of April 2017. The world apparent usage of refined copper declined during the initial five-month period of 2017, whereas refined production remained essentially flat. Also, world mine production declined during this period.

Market Balance

The refined copper market balance for the first five months of 2017 indicates an apparent production surplus of around 15,000 metric tonnes, mainly on account of decline in Chinese apparent demand. Incidentally, China accounts for approximately 48% of the world refined copper usage.

Refined Copper Output

World refined copper production remained essentially unchanged during the initial five-month period of 2017. The primary production recorded 2% decline during the period, whereas the secondary production increased considerably by 12%. The key contributors to world refined copper production were China and Mexico. The production by Mexico surged higher by 11%, whereas Chinese production registered 6.5% growth over the previous year. On the other hand, the production by Chile declined sharply by 13.5% during Jan-May ‘17. The output by the US and Japan too dropped during this period.

On regional basis, refined output by the Europe and Asia increased by 2.5% and 4.5% respectively. The output by African region remained essentially flat. Meantime, the refined copper output by Americas and Oceania region declined by 10.5% and 8% respectively.

Copper Mine Output

According to ICSG data, world copper mine production has declined by around 3% during the first five months of 2017. The mine output from Chile reported significant decline of 10%, primarily on account of huge drop in production volumes on account of prolonged strike at Escondida mine and lower output from Codelco mine. The copper concentrate output by Canada and Mongolia declined by 20% and 21% respectively, mainly due to lower grades.

The Mexican copper mine production witnessed 11% jump during Jan-May ‘17. The Peruvian concentrate output was up by 6%. The concentrate production by Indonesia and the US declined by 14% and 11% respectively.

Region-wise, Europe, including Russia, recorded 4% rise in production. Also Oceania recorded 5% rise in output. The Americas and Africa region recorded decline in mine output of 6% and 4% respectively. The production by Asian region recorded marginal increase of 1%.

Copper Consumption

Meantime, global usage of the metal is estimated to have declined by around 3% during Jan-May ‘17. The decline in usage was mainly due to 5.5% decline in apparent usage by China. The metal usage by major consuming countries such as India and Japan increased, whereas the usage by the US and Germany reported decline. Region-wise, the usage declined in all regions.