Global Copper Market Fundamentals Not as Pessimistic as Market Expects, SMM Reports

SHANGHAI, Aug. 18 (SMM) – For those who are still pessimistic over copper market fundamentals, latest data from the World Bureau of Metal Statistics (WBMS) will definitely cheer you up, SMM understands. 

WBMS data showed global copper supply deficit expanded in H1 2016 and consumption grew faster than supply. 

According to the WBMS, global copper market was in a supply deficit of 197,000 tonnes in H1 2016, expanding from a deficit of 48,000 tonnes during January-May, a sharp reversal from the surplus of 372,000 tonnes in 2015. This marks the first supply shortage since October 2014. 

Global copper concentrate output totaled 9,998,630 tonnes in H1 2016, up 5.93% from a year ago. This was contributed mainly by a 51.46% or 381,274 tonne surge in output in Peru, due to commissioning of Las Bambas and Cerro Verde II copper mines. Output in Chile, by contrast, slid 5.35% from a year ago to 2,764,500 tonnes because of falling ore grade. 

Global refined copper output rose 3.4% year-on-year to 11.60 million tonnes in H1 2016, driven by 250,000 tonne increase in China and 28,000 tonne growth in Chile. 

Meanwhile, global apparent copper consumption also rose, up 6.69% from a year ago to 11,800,211 tonnes in H1 2016, with growth in China, the EU and India, versus declines in Japan, South Korea and the US.   

Apparent copper consumption in China rose 9.8% from a year ago to 5,852,015 tonnes in H1 2016, claiming 49.59% of global demand, while that in the EU increased 4.4% to 1,773,302 tonnes.      

These figures suggest copper market fundamentals were experiencing positive changes, which is why copper prices managed to resist dramatic falls in H1 2016, SMM pointed out.  

Looking ahead at H2 2016, copper price movement will depend mainly on whether supply & demand picture will continue improving, SMM added. 

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.