Sep 20, 2011 LONDON (Dow Jones)--The world refined-copper market was in deficit by 42,000 metric tons in June, the International Copper Study Group said Tuesday.
For the first six months of the year, the ICSG said it estimates a production deficit of 130,000 tons. This compares with a deficit of 286,000 tons in the same period of 2010.
Global refined-copper production rose 0.2% on the month or 4,000 tons to 1.65 million tons in June while apparent global refined usage of copper dropped 0.9% or 16,000 tons to 1.69 million tons.
During the first six months of the year, refined-copper production rose 2.5% to 9.62 million tons compared with the same period a year earlier while apparent refined-copper usage rose 0.8% to 9.75 million tons.
Global refined production rose during the first half due to a 35% increase in Australian output, a 12% rise in Chinese output and a 5% rise Indian output which offset a 4% decline in Chile, 8% decline in the U.S., 26% decline in Canada, and 18% decline in Japan.
The average refined capacity-utilization rate for the first half of 2011 was unchanged from that in the same period of 2010 at 79%.
Meanwhile apparent refined-copper usage rose due to increased demand in Russia, the European Union and the U.S.--and despite a 6% decline in China's apparent usage.
"Usage in the United States and the EU continued to recover from the recession, although now at a much slower pace than during 2010," the ICSG said in a statement.
World mine production fell 2.4% to 1.32 million tons on the month in June but was up about 1.5% during the first six months of the year compared with the same period a year earlier.
Production from three of the world's four leading producers--Chile, Peru and the U.S., fell by a combined 2% in the first half of 2011 compared with the same period in 2010. The three countries account for more than half of the world's copper production, the ICSG said.
China, currently the second-largest producer globally, reported a 15% rise in mined copper output.
The average mine capacity-utilization rate for the first half of 2011 was slightly lower than that in the same period of 2010 at 78%.