WBMS: World Copper Market Records Deficit in First Quarter 2018

SEATTLE (Scrap Monster): The initial quarter ended in marginal deficit for world copper market. This is in accordance with the latest Metals Balances Report published by the World Bureau of Metal Statistics (WBMS). The report states that copper market ended in marginal deficit of 158 kt during the initial three-month period of the year. This follows a deficit of 235 kt during the whole of 2017.

According to WBMS report for Q1 2018, world copper mine production surged higher by nearly 4% during the first three months in 2018, to total 4.9 million tonnes. The mine production during the month of March alone totaled 1.6 million tonnes. Meantime, refined copper output by world countries totaled 5.8 million tonnes during the first quarter of 2018, significantly higher by 3.1% over the corresponding quarter in 2017. The Chinese refined production recorded notable jump by 74 kt, whereas Chile witnessed rise of 25 kt in its output in Q1 2018.

ALSO READ: ICSG Copper Bulletin Highlights Copper Demand-Supply Data

The reported stocks of the red metal increased during Q1 2018, when compared with end-2017 levels. The stocks at the end of the first three months of the year closed at a higher level, up by 302 kt from end-December 2017 levels. This is inclusive of the net delivery of 124 kt into LME warehouses in Asia and 41 kt into the Dutch LME warehouse. Also, the above stock data doesn’t take into consideration any of the unreported stock changes, including those of Chinese government stockpile.

The global copper consumption rose from 5.7 million tonnes in Jan-Mar ’17 to 6.0 million tonnes during the opening three months of 2018. The Chinese apparent consumption rose significantly by over 17% to 3.136 million tonnes, accounting for approximately 52% of the global demand. The EU demand too rose modestly by 4.3% to 852 kt, upon comparison with the Q1 2017 demand.

The monthly refined copper output totaled 1,962.7 kt during March this year. The consumption during the month totaled 2,071.1 kt.