Global copper mine production inches up in 2023

The International Copper Study Group (ICSG) recently released preliminary data on the global copper market, providing insights into the supply and demand dynamics in 2023.

According to the report, global copper mine production experienced a modest increase of approximately 1%, reaching 22.063 million tonnes (mnt) in CY 2023 compared to 21.950 mnt in the same period the previous year. However, on a m-o-m basis, production stood at 1.962 mnt in December 2023, slightly up from 1.897 mnt in November 2023.

The growth in global mine production in 2023 was attributed to several start-ups and expansions, but operational constraints in key producing countries, including Chile, China, Indonesia, Panama, and the United States, limited overall world growth.

Chile, a significant copper producer, saw a decline of 1.5% in copper mine production in 2023. This drop was primarily attributed to technical issues, lower grades, and reduced water supply due to a drought in the central region.

Global refined copper production

On the refined copper production front, primary production, derived from electrolytic and electrowinning processes, increased by approximately 5%, while secondary production from scrap surged by 9%. Notably, China and the Democratic Republic of Congo (DRC) played a pivotal role in driving the growth in refined copper production, with global output elsewhere declining by 1%.

Chilean total refined copper production experienced a slight decrease of 0.8%, with electrowinning (SX-EW) output declining by 1.7%, while electrolytic production increased by 0.9%. Other major producing countries, including Japan, the United States, India, Indonesia, Finland, and Sweden, faced declines in production due to maintenance outages, accidents, or operational issues.

Chinese refined production data revealed a substantial rise of about 14%, driven by the start-up and expansion of primary and secondary smelters and refineries.

Refined copper usage

In terms of refined copper usage, global apparent demand grew by approximately 4% in 2023, reaching 27.013 mnt, compared to 25.835 mnt in 2022. China played a crucial role in supporting global refined usage, with a growth rate of around 9%.

However, the rest of the world, excluding China, saw a decline of about 2%, influenced by lower demand in the EU, Japan, and the United States.

Copper stocks

China's bonded copper stocks were reported to have declined by approximately 26,000 t in 2023. As of the end of Jan'24, total copper stocks at major metal exchanges (LME, COMEX, SHFE) reached 217,434 t, marking a 1.7% increase from Dec'23. Notably, stocks increased at SHFE (+63%) and COMEX (+24%) but decreased at LME (-12%).