Widening Surplus
Global copper surplus widens to 535,000 tn in Jan-Aug, output up 5.1% on yr
This story was originally published at 15:17 IST on 22 October 2024
Register to read our real-time news.Informist, Tuesday, Oct. 22, 2024
MUMBAI – Global production of refined copper rose 5.1% on year to 18.33 million tonnes in Jan-Aug, while consumption was up 2.5% at 17.8 million tonnes. This led to widening of surplus of the red metal to 535,000 tonnes in Jan-Aug from 75,000 tonnes in the same period last year, the International Copper Study Group said in a report on Tuesday.
The surplus in the copper market in August narrowed to 54,000 tonnes from 73,000 tonnes the previous month. Global refined production in August rose 0.2% from a month ago to 2.32 million tonnes, while consumption rose 1.1% to 2.27 million tonnes, the report said.
Production in China, the largest producer of refined copper, increased 6.5% on year in Jan-Aug due to commissioning and expansion of primary and secondary smelters and refineries, the report said. Production in the Democratic Republic of Congo rose 16% in Jan-Aug from a year ago due to continued ramp-up of new or expanded electrowinning plants, according to the report. China and Congo account for about 54% of the world's total refined copper production.
The output in Chile, another major producer, fell 7% in Jan-Aug from a year ago because of a decline in primary electrolytic and electrowinning production. Refined copper production rose 3.8% on year in Japan, the report showed. Global secondary production from scrap rose 4.6% on year to 3.1 million tonnes in the first eight months of the year.
Demand for copper from all countries, excluding China, in Jan-Aug is estimated to have risen 2% on year as weak demand in the European Union, Japan, and the US was offset by growth in a number of Asian, West Asian, and North African countries. Demand from China grew 2.7%, the study group said.
The average monthly global copper mine capacity is currently 2.37 million tonnes, against 2.28 million tonnes a year ago. During Jan-Aug, the mine utilisation rate fell to 78.3% from 80% a year ago, the group said.
Copper stocks at major exchanges rose 134% to 500,278 tonnes in September compared with stocks held at the end of December, the group said. On the London Metal Exchange, the average cash price rose 3.2% to $9,254.50 per tonne in September from $8,963.71 per tonne in August.
At 1355 IST, the most-active three-month copper contract on the LME was $9,618.00 per tonne, up 0.6% from the previous close. End
US$1 = INR 84.07
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Sandeep Sinha
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
