ICSG: World refined copper output surged 32% during 2006-2015

ICSG: World refined copper output surged 32% during 2006-'15

By Paul Ploumis

SEATTLE (Scrap Monster): The International Copper Study Group (ICSG) has published its 2016 Statistical Yearbook. The report provides detailed assessment of how global copper market evolved in the past ten years. It focuses on copper production, usage and trade statistics for the ten-year period from 2006 to 2015.

According to ICSG, world copper mine production surged higher by 28% from 14.983 million metric tonnes (Mt) in 2006 to 19.128 Mt in 2015. Over the ten-year period, world mine capacity increased sharply from 16.810 Mt to 22.553 Mt. Meantime, mine capacity utilization rate dropped from 89% to 85% during 2006-‘15. The capacity utilization rate averaged at around 83% during this period, mainly on account of labor unrests, temporary mine shutdowns forced by financial crisis and delay in expanded/new supply.

The share of Latin American countries in world copper mine production dropped from 44.9% in 2006 to 41.3% in 2015. The Asian share increased from 18.4% in 2006 to 20.3% in 2015. Meantime, share of mine output by North American region remained almost flat, dropping marginally from 14.4% to 14.2% over the 10-year period.

The copper concentrate production increased by one-fourth, whereas solvent extraction-electro winning (SX-EW) production rose by 39%. The share of SX-EW production in total mine production increased marginally from 19% in 2006 to 20.5% in 2015. The overall mine production growth averaged at 2.8% per year over the ten-year period.

The ICSG report states that though Chile continued to remain as the biggest copper mine producer in the world, its share in world production declined from 36% to 30%. Meantime, Peru and China increased their share to 9% from 7% and 6% respectively. The copper mine output from African countries increased significantly to total 1.2 Mt. Among individual countries, China and the Democratic Republic of Congo (DRC) reported rise in mine production amounting to 800,000 t each. The other countries to record notable rise in output were Peru (650,000 t) and Chile (400,000 t).

Over the period from 2006 to 2015, the world refined copper production soared higher by 32% from 17.288 Mt to 22.873 Mt. Primary refined production increased by 29%, whereas production from scrap surged higher by 51%. The refined production by DRC skyrocketed from 25,000 t in 2006 to 800,000 t in 2015. The North American production declined sharply by 10%, mainly on account of refinery closures in the US and Canada. On the other hand, the EU refined production jumped higher by 10%.

The share of Latin American countries in world copper refined production dropped from 20.6% in 2006 to 14.5% in 2015. The Asian share increased from 40.5% in 2006 to 52.5% in 2015. Meantime, share of mine output by North American region declined from 12.3% to 8.3% over the 10-year period.

According to ICSG, the refined copper usage increased by 36% from 16.926 Mt in 2006 to 23.035 Mt in 2015. The Chinese apparent usage more than tripled during the ten-year period. The usage by world countries excluding China has decreased by 12%. The largest declines were reported by the EU region (-23%), Japan (-22%) and the US (-15%).

The share of Latin American countries in world copper refined usage declined from 3% to 2% over the decade. The Asian share increased from 47% in 2006 to 69% in 2015. Meantime, share of mine output by EU-region declined from 25% to 14% over the 10-year period.