ICSG: Scrap Copper Production Surged 9%

SEATTLE (Scrap Monster): The International Copper Study Group (ICSG) published its August 2018 Copper Bulletin, which provides preliminary copper supply and demand data for the month of May this year.

The ICSG report suggests that world copper mine production increased by 5.7% during first five months of the current year. The mine production jumped higher by nearly 450,000 tonnes during this period. Chile-the world’s biggest copper miner, reported 13.5% surge in output over the previous year, mainly on account of resumption of production at Escondida mines after strike and increased production levels at Codelco mines. The Indonesian output too was up sharply by 43%. However, the rise in output was partially offset by Canada and the U.S, which recorded year-on-year output declines by 8.5% and 10% respectively.

The concentrate output rose by 5.5%, whereas the SX-EW output was up by 6%. Among various regions, Africa recorded 11% jump in mine production, followed by Oceania with 10% and Latin America with 8.5%. Meantime, North American copper mine production dropped by 7.5% during Jan-May ’18.

The refined copper production rose marginally by 2% in Jan-May ’18. Although primary production witnessed marginal rise by 0.5%, the copper production from scrap surged higher by 9%. The key contributor to the output growth was China, which reported significant capacity expansion. The production in Chile was up by 6.5%. Indonesia and Japan too reported higher production levels. On the other hand, India, Peru, Poland and the U.S. posted output declines over the year.

The world apparent usage of refined copper has increased marginally by 1.1%. The world refined copper balance for the first five months, after adjusting for changes in Chinese stock bonds, indicates market surplus of nearly 25,000 tonnes.