World Refined Copper Market Pins Surplus As Usage Drops By 3%

SPOKANE (Scrap Monster): The International Copper Study Group (ICSG) has announced publication of May 2017 Copper Bulletin, which provides preliminary copper supply and demand data for the month of February this year. According to preliminary ICSG data, copper production and usage data points to a production surplus of around 150,000 metric tonnes during the first two months of the year.

The refined copper market balance for the first two months of 2017 showed an apparent production surplus of around 150,000 metric tonnes. This is mainly on account of steady production levels amidst modest decline in consumption levels. The slow growth in Chinese apparent demand mainly contributed to surplus market condition during the period.

World refined copper production remained essentially unchanged during the initial two month period of 2017 in comparison with the corresponding period in 2016. The primary production declined modestly by 3% during the month, whereas the secondary production increased considerably by 11%. The refined copper production during the month witnessed significant growth of 4% in China. The electrowinning output by the US witnessed decline. The expansion of SX-EW capacity contributed to the 14% jump in production by Mexico during the two-month period. The output by Chile witnessed sharp decline of 16% during Jan-Feb ‘17. The country reported considerable decline in both primary electrolytic refined production and electrowinning production. The production by Japan too reported decline.

On regional basis, refined output by the Africa and Asia increased by 2% and 3% respectively. The output by European region including Russia witnessed increase of 1.5%. On the other hand, the refined copper output by Americas region declined by 11%. The refined production of copper was up by 5% in Oceania region during January to February this year.

The world copper mine production is estimated to have declined by around 2% during the first two months of 2017. Concentrate production was down marginally by 1.0% during the period. Meantime solvent extraction-electrowinning (SX-EW) output declined 5%. The mine output from Chile reported significant decline of 10%, primarily on account of plunge in production volumes from Escondida mines due to strike and lower output from Codelco mines. However, the production during the month was 6% lower when matched with the average production levels during the last quarter of 2016.

The Mexican copper mine production witnessed 18% jump during Jan-Feb ‘17. On the other hand, concentrates production by Canada and Mongolia dropped sharply by 19% and 23% respectively, mainly due to lower grades. The temporary ban in concentrate exports in effect from January to April this year in Indonesia resulted in 10% decline in concentrate production by the country. Region-wise, Europe recorded 5% rise in production. Also Oceania recorded 10.0% rise in output. The Americas and Africa region recorded decline of 4% and 6% respectively in mine output. Meantime, production remained essentially unchanged in the Asian region.

Meantime, global usage of the metal is estimated to have declined by around 3% during Jan-Feb ‘17. The decline in usage was mainly due to 9.5% decline in apparent usage by China. The usage by world countries excluding China grew at 2.5%. The metal usage by some countries in Asia and Europe reported growth in copper consumption. Region-wise, the usage by Asia declined by 5.0%. The Americas too reported marginal decline of 1% in copper usage. Meantime, the European demand rose by 3.5%. Also, apparent copper usage surged higher by 6% in the Asian region excluding China.

The table given below provides World Refined Copper Supply Trends for the first two months of 2017:

Note: The above figures are in thousand metric tonnes