Global Copper Market Ended in Marginal Deficit

Author:Suny Group

The copper market recorded marginal surplus during the seven-month period from January to July this year. The copper market deficit totalled 27kt 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 145kt during the whole of 2018.

The world copper mine production totalled 11.62 million tonnes during Jan-July ’19. This was marginally lower by 0.5% when compared with the corresponding seven-month period in 2018. The refined copper production too saw notable decline by 3.2% during January to July in 2019 to total 13.26 million tonnes. The production recorded significant decline in India and Chile. The Indian output declined significantly by 96 kt over the previous year, whereas the production by Chile was down by 199kt. Meantime, the EU-28 production dropped marginally by 2.6%, WBMS report said.

The global consumption dropped marginally from 13.78 million tonnes in Jan-July ’18 to 13.29 million tonnes during the similar seven-month period this year. The Chinese apparent demand during this period recorded notable decline by 3.9% to total 6.754 million tonnes. The EU demand at 1.885 million tonnes too was down modestly by 6% over the previous year.

The reported copper stocks increased in July this year to close at a level higher than end-2018 by 144kt. LME warehouses reported net deliveries of 156kt and nearly 31kt into Shanghai warehouses.

In July ’19, refined copper production totalled 1,991.0kt, whereas the consumption reached 1,994.0kt.