Copper production continues to grow - ICSG

The International Copper Research Group (ICSG) released its July newsletter reflecting the state of the global copper market.

Global refined production increased by almost 3 percent in the first four months of 2015. Primary production rose 2 percent, while secondary production increased 8.5 percent. Refined copper production saw strong growth in China during the month, climbing 6 percent. DRC production grew by 14 percent. On the other hand, production of refined copper in Chile, Japan and the United States fell by 4 percent in each of the countries. The African and Asian regions recorded 7 percent and 6 percent growth in refined copper production, respectively.

Global copper mine output increased by about 3 percent during the first four months of 2015, and copper concentrate production also increased by 3 percent during the period. Copper mining in Chile and Indonesia recovered during this period. Copper production in Peru, the world's third-largest mining country, increased by 4 percent. US production fell 6 percent.

Meanwhile, global metal use is estimated to have declined by about 4 percent from January to April in 2015. China's apparent demand fell 5 percent. Use by countries around the world, excluding China, also declined by 3 percent. Russian use fell 43 percent, while EU demand fell 7 percent. Japanese apparent demand fell 6 percent over the reporting period.

According to preliminary data for April this year, displayed by ICSG in its July bulletin, copper production on the background of use showed a clear production deficit, primarily due to strong Chinese demand. The refined copper market balance showed an apparent production deficit of nearly 80,000 tons. The monthly surplus, following seasonal adjustments for global refined copper production and use, was 30,000 tonnes. The balance of copper in the first four months of the year showed a surplus of 60,000 tonnes in production, compared with a deficit of 436,000 tonnes in the same period last year.