Global copper surplus reaches 159,000 tons in January-April

According to data released by the World Bureau of Metals Statistics (WBMS), the global copper market surpassed 159,000 tonnes between January and April 2015. Worldwide copper consumption was 7,260,000 tonnes in the first four months of this year. During the corresponding period in 2014, copper consumption was higher and reached 7,380,000 tonnes.

World production of refined copper was 7,420,000 tons in January-April this year, up 3.8 percent year on year. At the same time, the copper market recorded a surplus of 237,000 tons in 2014. As the largest consumer of copper, China has the greatest impact on these numbers.

China also has the largest imports of copper ore, anodes and refined copper. China's decline in copper imports is a negative signal for copper producers in South America, where the main copper mines are located. Inbound imports of copper ore and concentrate to China were down 5.7 percent in May from a month earlier and totaled 700,000 tonnes according to the latest data. However, compared to May 2014, copper imports increased by as much as 40 percent. The country's refined copper production reached 650,000 tons in May, up 6 percent from a year earlier.

In the near future, copper prices will remain in a downtrend, as expected by the SMM research group. While on the London Metal Exchange (LME), copper found support at $ 5,700 a tonne, and the CFTC is reporting continued gains in short positions in the red metal. This, plus the market risk over the Greek debt issue, could strengthen copper prices. Given the negative technical resistance on the Shanghai Metal Exchange SHFE, copper is likely to hit 41,500 yuan a tonne. However, copper contracts on SHFE for August delivery fell 6.5 percent but found no support at 41,800 yuan a tonne and rose 100 yuan. SHFE copper trading volumes rose during the week.