World Apparent Usage of Refined Copper Declined In H1 2017

SEATTLE (Scrap Monster): The International Copper Study Group (ICSG) has released its September 2017 Copper Bulletin. The publication provides preliminary copper data through June this year. The world apparent usage of refined copper declined during the initial half yearly period of the year, whereas refined production remained essentially flat. Also, world mine production declined marginally during the six-month period.

Market Balance

The refined copper market balance for the first six months of 2017 indicates an apparent production deficit of around 75,000 metric tonnes, mainly on account of flat growth in world refined copper supply. The market balance after adjusting for changes in Chinese bonded stocks suggests deficit of around 5,000 metric tonnes.

Refined Copper Output

World refined copper production remained essentially unchanged during the first half of 2017. The primary production recorded 1.5% decline during the period, whereas the secondary production increased considerably by 12%. The key contributors to world refined copper production were China, India and Mexico. The production by Mexico surged higher by 10%, whereas output by India surged higher by 9%. Meantime, Chinese production registered 7% growth over the previous year. On the other hand, the production by Chile declined sharply by 12% during Jan-June ‘17. The output by the US and Japan too dropped by 10% and 4% respectively during this period.

On regional basis, refined output by the Europe and Asia increased by 3.0% and 5.0% respectively. The output by African region remained essentially flat. Meantime, the refined copper output by Americas and Oceania region declined by 10% and 6% respectively.

Copper Mine Output

According to ICSG data, world copper mine production has declined by around 2% during the first half of 2017. The mine output from Chile reported significant decline of 9%, 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 22% and 21% respectively, mainly due to lower grades. The concentrate production by Indonesia and the US declined by 9% and 10% respectively.

The Mexican copper mine production witnessed 9% jump during Jan-June ‘17. The concentrate output by Peru was up by 7%.

The mine production registered quarter-on-quarter improvement during Q2 this year.

Copper Consumption

Meantime, global usage of the metal is estimated to have declined by around 2% during Jan-June ‘17. The decline in usage was mainly due to 4% decline in apparent usage by China. The metal usage by major consuming countries such as India, Japan and the US increased, whereas the usage by the Germany registered decline.

Region-wise, Europe, including Russia, recorded 4% decline in consumption. Also Africa and Asia reported 3% and 2% decline respectively in copper usage during the first half of 2017. On the other hand, the production by Americas region edged higher marginally by nearly 1%.