Copper market swings into surplus in July

Global – After several months of deficit, the world refined copper market registered an apparent production surplus of around 133 000 tonnes in July, mainly as a result of weaker apparent demand in China.

But across the first seven months of 2016 as a whole, the market was still showing a production deficit of around 264 000 tonnes compared to a shortfall of almost 70 000 tonnes for January-July 2015.

Year on year, world production of refined copper is estimated to have increased by approximately 2.8% to 13.477 million tonnes in the first seven months of 2016: primary production climbed 2.5% to 11.155 million tonnes while secondary production from scrap jumped 5% from 2.211 million tonnes to 2.322 million tonnes, International Copper Study Group (ICSG) statistics reveal.

Global usage of refined copper is calculated to have increased by around 4% to 13.741 million tonnes in this year’s opening seven months.

China’s apparent demand surged 9% based on a 14% increase in net imports of refined copper although the July import total of 176 000 tonnes was the lowest since April 2013, according to the ICSG.