Global Refined Copper Production Surges 5.9% in January-July, Widening Surplus to 528,000 Tonnes

The global production of refined copper rose 5.9% year-on-year to 16.1 million tonnes in the first seven months of 2024, while consumption increased by 2.9% to 15.57 million tonnes, according to a report released by the International Copper Study Group (ICSG). This led to a widening global surplus of 528,000 tonnes during the January-July period, compared to 79,000 tonnes in the same period in 2023.

The surplus in the copper market for July alone narrowed slightly to 91,000 tonnes, down from 113,000 tonnes in June. Global refined copper production in July rose by 2.9% from the previous month to 2.35 million tonnes, while consumption increased by 4.1% to 2.26 million tonnes.

China, the world’s largest producer of refined copper, saw its output rise by 7% year-on-year during January-July, driven by the commissioning and expansion of primary and secondary smelters and refineries. The Democratic Republic of Congo also reported an 18% increase in production due to the ramp-up of new or expanded electrowinning plants. Together, China and Congo account for about 54% of the world's total refined copper production.

In contrast, Chile, another major copper producer, saw its output decline by 6.6% in the same period due to a reduction in primary electrolytic and electrowinning production. Japan's refined copper production increased by 3.6% year-on-year. Global secondary production from scrap copper also grew, rising 4.9% year-on-year to 2.7 million tonnes during the first seven months of the year.

Copper demand outside China increased by 2% during January-July, with weak demand in the European Union, Japan, and the U.S. offset by growth in other Asian countries. Meanwhile, China's copper demand grew by 3.5%.

The global copper mine capacity averaged 2.36 million tonnes per month in 2024, up from 2.27 million tonnes a year ago. However, the mine utilization rate fell slightly to 78.8%, compared to 79.9% in the same period last year.

Copper stocks at major exchanges surged by 180%, rising by 384,939 tonnes to reach 598,789 tonnes by the end of July compared to levels at the end of December 2023. The average cash price for copper on the London Metal Exchange (LME) dropped by 4.6% to $8,963.71 per tonne in August from $9,393.57 in July.