Global refined copper production rises nearly 1.5% in Jan-Aug'23

The International Copper Study Group (ICSG) has recently released preliminary data for world copper supply and demand in Aug 2023. During the first eight months of 2023, global copper mine production increased by approximately 1.3% to 14.46 million tonnes (mnt) compared to 14.26 mnt in the same period last year.

Primary production, which includes electrolytic and electrowinning from ores, also rise by about 4.7% to 14.68 mnt, while secondary production from scrap increased significantly by 7% to 2.93 mnt.

The growth in global refined production primarily resulted from robust performances in China and the Democratic Republic of the Congo (DRC), driven by capacity expansion. Conversely, global production in other regions saw a 1% decrease.

Preliminary official data from China suggests an approximate 12% increase in refined production. Refined output is believed to have increased by 7% in the DRC, thanks to the ongoing expansion and commissioning of new electrowinning facilities.

Global copper mine production

Data show that global copper mine production grew by around 1.3% during the first eight months of 2023. Concentrate production saw an increase of approximately 1.4%, while solvent extraction-electrowinning (SX-EW) rose by 1.2%.

While the first eight months of 2023 saw the launch and expansion of some global mining operations, overall growth was constrained by operational challenges primarily in Chile, China, Indonesia, Panama, and the United States, especially during the first half of the year.

Chilean production decreased by 2.5% during the initial eight months of the year, primarily due to operational challenges, lower ore grades, and diminished water supply caused by a drought in the central region, affecting several mines in the country.

Global refined copper usage

The figures indicate that global apparent refined copper consumption increased by approximately 2.5% during the Jan-Aug 2023. The growth in global refined copper consumption has been primarily driven by strong apparent demand in China, while the rest of the world has seen a decline in usage.

Chinese apparent demand, when excluding changes in bonded/unreported stocks, increased by approximately 5%. Although Chinese net refined copper imports decreased by 10%, there was a 12% growth in refined copper production.

World refined copper usage, excluding China, faced a downturn due to reduced demand in the EU, Japan, and the United States, resulting in an estimated decline of about 3%.

Copper stocks

Copper stocks stored at the major metal exchanges (LME, COMEX, SHFE) reached 231,284 tons by the end of September 2023. This marked a significant increase of 41,779 tons, equivalent to 21%, when compared to the stock levels at the end of December 2022. Notably, stocks declined at SHFE by 44% and at COMEX by 27%, while LME stocks saw a substantial increase, surging by 91%.