WBMS Metal Balances Signal Deficit Copper Market

SEATTLE (Scrap Monster): The copper market recorded deficit during the initial eight-month period of the current year. The copper market deficit totalled 123 kt during this period. This is in accordance with the latest statistics published by the World Bureau of Metal Statistics (WBMS). It must be noted that the world copper market had recorded a deficit of 266 kt during the whole year 2018.

The world copper mine production totalled 13.41 million tonnes during Jan-Aug ’19. This was marginally higher by nearly 0.5% when compared with the corresponding eight-month period last year. The refined copper production saw modest decline by 2% during January to August in 2019 to total 15.47 million tonnes. The production recorded significant decline in India and Chile. The Indian output declined significantly by 88 kt over the previous year, whereas the production by Chile too was down by 206 kt. Meanwhile, the EU-28 production dropped by 3.6%, WBMS report said.

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The global consumption too declined by over 2% from 15.79 million tonnes in Jan-Aug ’18 to 15.47 million tonnes during the similar eight-month period this year. The Chinese apparent demand during this period recorded notable decline by 3.3% to total 7.836 million tonnes. The EU demand at 2.154 million tonnes too was down modestly by 4.4% over the previous year.

The reported copper stocks rose in August this year to close at a level higher of 174 kt, when compared with the levels as at end-2018. The LME and Shanghai warehouses reported net deliveries of 204 kt and 25 kt respectively.

The monthly refined copper production totalled2,004.3 kt in August 2019, whereas the consumption touched 2,011.2 kt.