Business
ICSG Reports Copper Surplus
By Bulk Materials 23/6/09
Jun 29, 2009 - 8:35:45 AM

According to an industry report released by The International Copper Study Group (ICSG), world refined copper output in January to March reached 4.382 mt, while consumption totaled 4.335 mt.

"In the first quarter of 2009, world usage decreased by 4% compared to that in the first quarter of 2008. Had it not been for a very high apparent usage in China, the decline would have exceeded 10%," ICSG said.

The report said that Chinese apparent usage grew by 36% (as net imports of refined copper almost doubled to about 750,000t), partially offsetting a decrease of 19% in the rest of the world.

Markets were particularly weak in the EU-15 countries, Japan, and the USA, where usage decreased by 25%, 46%, and 27%, respectively. These three regions currently represent around 30% of the world total copper usage.

World mine production grew by 1.6% (57,000t) in the first quarter of 2009 compared with that in the same period of 2008, when operational problems led to reduced production.

However, owing to production constraints and intentional cuts/shut-downs, mine production remained well below available capacity with capacity utilisation falling to around 77%, compared with an average of 87% over the past 5 years.

The main contributors to mine production growth were Indonesia and Peru, with mine production declining in Australia, Chile and China.

Source: Ocnus.net 2009