World copper mine production increases 2.6%, Q1'22, ICSG reports

International Copper Study Group (ICSG) has released the preliminary data for March world copper supply & demand.

World Copper Mine Production increases 2.6%:

Preliminary data indicates that world copper mine production increased by about 2.6% Q1'22 to 5,232,000 t as against 5,100,000 t in Q1'21. The reason being Global mine production, which has got benefited from additional production at newly established or expanded mines and recovery from lower output in Q1'21. Despite when the government imposed covid-19 restriction at the beginning of this year, due to omicron variant.

Chile copper mine production down 7%

Production in Chile, the world's largest copper mine producer, was down by 7%, in Q1'22, with concentrate production falling by 9%. A large number of mines in the country have been negatively impacted by desertion related to the high rate of covid-19 infections, lower grades and reduced water supply due to a long drought.

Peru copper mine production increases over 4%

Output in Peru, the world's second largest copper mine producer, increased by 4.2% in Q1 FY'22 to 553,749 t from 531,371 t in Q1 FY'21, due to the fact that at the beginning of 2021, the Peruvian mining industry was still operational after being severely impacted by COVID-19 lockdowns. Despite the recovery, Q1'22 production was still 6% below as against Q1'19.

World refined copper production increases almost 3%

As per ICSG, world refined copper production increased by about 2.9% to 6,286,000 t in Q1'22 as against 6,109,000 t in Q1'21. Although, Chilean total refined copper production (electrolytic and electrowinning) declined by 3.4% mostly impacted by a 9.8% reduction in electrolytic output and Chinese refined production data indicates a rise of 5% to 26,36,000 t in Q1'22 as against 25,00,000 t in Q1'21.

World copper balance in surplus

In Q1 FY'22, the world refined copper balance, based on Chinese apparent usage (excluding changes in bonded/unreported stocks), indicated a preliminary surplus of about 77,000 t for Q1 FY'22. The world refined copper balance adjusted for changes in Chinese bonded stocks indicated a market surplus of about 195,000 t for Q1 FY'22.

Notably, world copper mine capacity utilization remained at 79.1% in Q1 FY'22 as against 81% is the same quarter previous year. Copper refinery capacity utilization remained at 83.5% in Q1 FY'22 as against 82.6% in Q1 FY'22. World refined copper stocks recorded at 1,304,000 t at the end of Q1 FY'22 as against 1,360,000 t in Q1 FY'22.