WORLD DEMAND FOR REFINED COPPER EXPECTED TO INCREASE PRODUCTION IN 2012: ICSG
DATE: 02/05/2012
World demand for refined Copper is expected to overtake production again in the year 2012. The forecasts by International Copper Study Group (ICSG) released this week shows that the refined copper demand is expected to increase production by 240000 tonnes. This will be the third consecutive month of production deficit in 2012.
ICSG expects that the production will sharply increase in 2013 due to increased output from new and existing mines. The total production surplus could exceed demand by 350000 tonnes in the year 2013. Global markets will remain varied due to sovereign debt issues in Europe, political disturbances in Middle East and labour unrests.
World Copper mine production is expected to increase by 5.1% or 810000 tonnes in the year 2012 to 16.9 million metric tonnes. Capacity utilization rates are expected to increase from 79% in 2011 to average 81% in the year 2012. Mine production is expected to grow by 7.6% to 18.1 million tonnes in the year 2013.
Refined Copper production is expected to increase by only 2.5% to 20.15 million tonnes in the year 2012. Shortage of concentrates will result in the slow progress of Copper production. In the year 2013, availability of concentrates will result in 6.9% growth of refined Copper production.
Refined usage of Copper will grow by 2.5% to 20.4 million tonnes in 2012. The major consumers of refined Copper, China and US is likely to grow by only 3.6% and 3.9% respectively. In 2013, improved macro economics will result in Copper demand to grow by 3.9% while China refined Copper is expected to grow by 4.9%.
POWERED BY: COMMODITY INSIGHTS
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