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Copper October 31, 2017 12:30:02 PM

World Refined Copper Usage Seen Constrained by Scrap Supply Boost

Paul Ploumis
ScrapMonster Author
The refined copper market balance for the first seven months of 2017 indicates an apparent production deficit of around 160,000 metric tonnes, mainly on account of stagnant growth in world refined copper supply.

World Refined Copper Usage Seen Constrained by Scrap Supply Boost

SEATTLE (Scrap Monster): The International Copper Study Group (ICSG) has released the preliminary copper data for July this year in its recently published October 2017 Copper Bulletin. The world apparent usage of refined copper has declined marginally by 0.5% during the seven-month period. The refined production remained essentially unchanged. Meantime, copper mine production declined by around 2%.

Market Balance

The refined copper market balance for the first seven months of 2017 indicates an apparent production deficit of around 160,000 metric tonnes, mainly on account of stagnant growth in world refined copper supply.

Refined Copper Output

World refined copper production remained essentially unchanged during the initial seven-month period of 2017. The primary production recorded 1.5% decline during the period, whereas the secondary production increased considerably by 10%. China, India and some EU countries were the main contributors of world refined copper output. The Indian production surged higher by 7%, whereas the Chinese production was up by 6.5% over the previous year. The output from European countries returned to normal levels following reduced output due to maintenance shut downs in 2016. On the other hand, the production by Chile declined sharply by 11% during Jan-July ‘17. The output by the US and Japan too dropped by 9% and 5% respectively during this seven-month period.

On regional basis, refined output by Asia and the Europe increased by 4.5% and 4.0% respectively. The output by the African region witnessed 3% decline. Meantime, the refined copper output by Americas and Oceania region declined by 10% and 9% respectively.

Copper Mine Output

The world copper mine production has declined by nearly 2% in the first seven months of the current year, according to ICSG data. The mine output from Chile- the world’s biggest producer of mined copper reported significant decline of 7% in output, primarily on account of huge drop in production volumes on account of prolonged strike at Escondida mine and lower output from Codelco mines. The copper concentrate output by Canada and Mongolia declined by 22% and 19% respectively, mainly due to lower grades. The Indonesian concentrates production declined by 10%. The US production slumped by 9%. These declines were partially balanced by 3% and 5% jump in output by Mexico and Peru respectively.

Region-wise, Europe, including Russia, recorded 2.5% rise in production. Also Asia recorded 3% rise in output. The Americas and Africa region recorded decline in mine output of 5% and 3% respectively. The production by the Oceania region has declined by 2%.

Copper Consumption

Meantime, global usage of the metal is estimated to have declined marginally by around 0.5% during Jan-July ‘17. The decline in usage was mainly due to 2% decline in apparent usage by China. The metal usage by major consuming countries such as India, the US and Japan increased, whereas the usage by South Korea and Germany reported decline.

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