According to figures released by the International Copper Study Group (ICSG), the global refined copper market ended in an apparent deficit of 69,000 mt in May this year. The figures are exclusive of adjustment for changes in Chinese bonded stocks.
The refined copper balance after adjustment to changes in Chinese bonded stocks ended in a deficit of 305,000 mt during Jan - May ‘14, compared to deficit of 65,000 mt during the corresponding five-month period in 2013. The Chinese bonded stocks increased by nearly 160,000 mt during the initial five-month period of the year.
The data also indicates that the refined copper balance for the initial five-month period in 2014 ended in a deficit of 466,000 mt. This is when compared with the production surplus reported during the same period last year, ICSG noted.
The Copper body also notes that the Chinese apparent copper demand increased by 29% during the period. The net copper imports by the country surged 65% year-on-year during Jan-May ’14. The strong demand growth in China elevated the world apparent copper usage by 15.5% during the five-month period when compared with 2013.
The global production of refined copper increased 7% in the initial five months of 2014. During this period, primary production saw growth of 6.5%, whereas secondary production was up by 7%. The ICSG data points out that world mine production is estimated to have increased by 5% during this period.