Global refined Copper production up by 4.5% Y-o-Y in Jan; China, Africa rise sharply: ICSG

LISBON (Scrap Monster): Global refined copper production increased by 4.5% year-on-year in January 2012, as per latest data released by The International Copper Study Group (ICSG). The main contributors to growth were China, Africa, Chile and United States.

According to ICSG data, China refined copper production advanced sharply by 10% year-on-year in January this year while African production increased by 25% year-on-year. Although smaller growth rates were also seen in Chile, up by 2% year-on-year and in the United States, gained by 1.6% year-on-year.

On a regional basis, refined copper production increased in all regions: Africa (25%), Americas (3.7%), Asia (4.5%), Europe (0.9%) and Oceania (6.5%). The average world refinery capacity utilization rate for January 2012 grew to 79.2% from 78.5% in the same month of 2011, ICSG added.

The primary copper production was up by 6% (mainly due to an increase of 13% in electrowon production) and secondary production (from scrap) was down by 1%, ICSG added.

ICSG also added that, the refined copper market balance for January 2012 showed a production deficit of 29,000 metric tons (t). When making seasonal adjustments for world refined copper production and usage, January showed a larger deficit of 92,000 t. This compares with a production deficit of 50,000 t (a seasonally adjusted deficit of 104,000 t) in January 2011.

In January 2012, world copper usage is estimated to have increased by 3.2% compared with that in January 2011. Chinese apparent usage grew by 18% owing to a 50% increase in net imports of refined copper. However, anecdotal evidence suggests that the high import level was accompanied by increased inventories held in bonded warehouses. Copper usage in the EU and the United States declined by 8.4% and 0.7%, respectively, compared with usage in January 2011. On a regional basis, usage increased in Africa by 2% and in Asia by 10%, but declined in Europe by 10%, in the Americas by 1%, and in Oceania by 10%, ICSG continued.

According to ICSG data, World copper mine production remained unchanged in January 2012 compared with production in January 2011. Concentrate production declined by 3.7% while solvent extraction-electrowinning (SX-EW) was up by 13%. Increases in China, Mexico and the United States were offset by declines in Chile, Indonesia and Peru.

On a regional basis, production in January rose by 15% in Africa, 6% in Oceania, 0.5% in Europe and 7% in North America, but declined by 6% in Asia and 3.5% in South America. The average world mine capacity utilization rate for January 2012 fell to 75% from 77% in the same month of 2011, ICSG added.

The average LME cash price for March 2012 was US$8,457.05 per tonne, up from the February average of US$8,422.69 per tonne. The 2012 high and low copper prices through the end of March were US$8,658 and US$7,471 per tonne, respectively, and the average was US$8,310.06 per tonne.

As of the end of March, copper stocks held at the major metal exchanges (LME, COMEX, SHFE) totalled 554,856 t, an increase of 10,245 t from stocks held at the end of December 2011 but a decline of 36,603 t from stock levels at the end of February 2012. Compared to the February levels, stocks were down at LME and Comex and up at SHFE.