Global Copper Production Surged 7.1% in Q1 This Year

SEATTLE (Scrap Monster): The International Copper Study Group (ICSG) has detailed the preliminary copper supply and demand data for March 2018 in its recently released June 2018 Copper Bulletin.

The Study Group estimates 7.1% jump in world copper mine production during the initial quarter of the current year. The concentrate production edged higher by 7%, whereas the SX-EW production surged higher by 7.3%. Easing of production constraints at Escondida mines coupled with improved production levels from Codelco mine contributed to the significant rise in mine output.

The Indonesian output recorded 58% year-on-year jump, mainly on account of temporary ban on concentrate exports during the comparable period last year. The restart of temporarily closed Zambian mine resulted in 16% jump in the country’s output. The Democratic Republic of Congo (DRC) reported 9.5% surge in SX-EW production. The copper mine output from Canada and the US declined by 10% and 7.5% respectively. The output by Peru remained more or less flat.

Region-wise, highest year-on-year production increase of 11% was witnessed in Africa, followed by the Americas (7%), Asia (6%), Oceania (5%) and Europe (4%).

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Q1 2018 also reported 3% jump in refined copper production, mainly driven by China. The primary production was up by 2.3%, whereas the production from scrap surged higher by 6%. The production in Chile was up by 8%. Indonesia and Japan too reported substantially higher production levels. The production jump in these countries was partially offset by declines in Peru, Poland and the U.S.

The world apparent copper usage has increased marginally by around 1.8% during Q1 this year, mainly on account of 5% growth in China. The OIndian usage too has increased. The usage by world countries excluding China has dropped marginally by 1%. Japan, the US and South Korea recorded usage declines.

 It must be noted that the world refined copper market had plummeted to massive deficit in 2017.