Copper deficit on the rise - ICSG

The International Copper Research Group (ICSG) released data for the past year. According to ICSG, the balance in the copper market for the first time in November 2014 showed a clear production deficit of almost 40,000 tons.

World production of refined products increased by almost 8 percent during 2014. Primary production rose to 9 percent, while secondary production increased by 3 percent. Global refined copper production during 2014 indicates a production deficit of over 640,000 tonnes. This is compared to a production deficit of 278,000 tonnes in 2013.

Meanwhile, the global use of the metal is estimated to have increased by more than 10 percent, driven by strong demand in China. Chinese demand is up 17 percent. Copper use by countries outside of China increased by 4 percent. The EU, Japan and the Middle East all saw an increase in copper use. The US reduced copper use by 1.5 percent for the year.

World copper production from mines increased by about 1.5 percent during 2014 and concentrate production by 1 percent during the period. Chile's output has remained largely unchanged. However, other major copper producers recorded an increase in production. Production in the Democratic Republic of the Congo grew by 1.5 percent, in Peru by 8 percent and in the United States by 9 percent. The higher output was provided by Mexico (+ 7 percent), Canada (+ 11 percent) and Mongolia (+ 35 percent).

On the other hand, the ban on the export of copper concentrates has limited output from Indonesia by 25 percent year on year. The temporary closure of mines in Zambia led to a 7 percent drop in production. Output from Australian mines fell 3 percent, while Papua New Guinea's output fell 2 percent due to landslides in the mine area.