BRUSSELS (Commodity Online): Global copper apparent usage, mine production and refined output advanced in the first eight months of this year, said International Copper Study Group (ICSG) in its November 2012 Copper Bulletin.

Refined copper market balance
According to ICSG data, the global refined copper market balance for August 2012 showed a small production deficit of 8,000 metric tonnes (t). When making seasonal adjustments for world refined production and usage, August showed a production deficit of 23,000 t.

The refined copper market balance for the first eight month of 2012, including revisions to data previously presented, indicates a production deficit of 522,000 t (a seasonally adjusted deficit of 361,000 t). This compares with a production deficit of 77,000 t (a seasonally adjusted surplus of 85,000 t) in the same period of 2011.

Copper apparent usage
In the first eight months of 2012, global apparent usage grew by 5.4% compared with that in the same period of 2011 principally owing to strong growth in Chinese apparent usage (that represented 42.7% of world usage over this period) as usage in the remaining regions declined by an aggregated 4%.

China’s apparent usage grew by 21% as reflected in a 60% increase in Chinese net imports of refined copper that were particularly high in the first quarter of 2012.

However, Chinese net imports in the 3rd quarter of 2012 were 24% lower than in the first quarter, and anecdotal evidence suggests that the high import level in early 2012 was accompanied by increased inventories held in bonded warehouses.

On a regional basis, usage remained practically unchanged in the Americas and in Asia ex-China, and declined by 10% in Europe, 4% in Oceania, and 13% in Africa.

Copper mine production
In the first eight months of 2012, global mine production increased by 3% compared with production in the same period of 2011.

Concentrate production increased by 1.8% while solvent extraction-electrowinning (SX-EW) was up by 7.6%. Increases in Chile (3.8%), China (23%), Democratic Republic of Congo (DRC) (23%), Mexico (22%) and Peru (5%) more than offset declines in Australia (5%), Indonesia (40%) and Zambia (4%).

On a regional basis, production rose by 4.8% in Africa, 1.4% in Asia, 3.5% in Europe and 4.2% in the Americas, but declined by 3.7% in Oceania.

The average world mine capacity utilization rate for the first eight months of 2012 remained practically unchanged at around 77.7%.

Refined copper production
Global refined production increased by 2% in the first eight months of 2012 compared with refined production in the same period of 2011.

The primary production was up by 1.9% (mainly due to the increase in electrowon production) and the secondary production (from scrap) increased by 2.4%.

The main contributors to growth were China (+8.8%), Japan (+17%) and the DRC (+31.5%), with production declining by 5.3% in Chile, 1.3% in the United States (owing to a series of smelter maintenance shutdowns), and by 82% in the Philippines (owing to a fire at the sole smelter).

The average world refinery capacity utilization rate for the first eight months of 2012 was 77.5% compared with 79% in the same period of 2011.