2015: tight scrap supply puts brake on secondary copper output

Global – A global refined copper deficit of around 57 000 tonnes was recorded in 2015 – representing a significantly more balanced market than in 2014 when the shortfall amounted to some 420 000 tonnes, according to preliminary findings from the International Copper Study Group (ICSG).

Production is estimated to have increased by around 1.6% last year to 22.821 million tonnes with the primary component climbing 2% to 18.893 million tonnes whereas secondary production from scrap edged just 13 000 tonnes higher to 3.928 million tonnes ‘as output was constrained by tight supply of scrap’, according to the ICSG.

On a regional basis, refined output is estimated to have increased last year by 1% in Africa, 3% in Asia and 4% in North America. Conversely, declines were recorded in South America (-1%), Europe (-1%) and Oceania (-4%). Average world refinery capacity utilisation was practically unchanged from 2014 at around 83.5%. Global apparent usage of refined copper dipped from 22.892 million tonnes in 2014 to 22.878 million tonnes last year.

China’s apparent demand expanded around 3% but usage declined by some 2% and 7%, respectively, in the EU and Japan. On a regional basis, usage is estimated to have increased by some 2% in Asia and 4% in Africa but to have slid around 1.5% in the Americas, 8% in Europe and 55% in Oceania.