The global production of refined copper increased by 5.5% year-on-year to 9.16 million tons from January to April 2024, while consumption rose by 4.2% to 8.86 million tons during the same period, according to a report released by the International Copper Study Group on Thursday. This resulted in an increase in the surplus of the red metal to 299,000 tons from 175,000 tons in the corresponding period last year.
China, the largest producer of refined copper, saw its production rise by 6% due to the commissioning and expansion of primary and secondary smelters and refineries. The Democratic Republic of Congo reported a 32% increase in production owing to the continued ramp-up of new or expanded electrowinning plants. Together, China and Congo account for about 54% of the world’s refined copper production.
Conversely, Chile, the second-largest producer, experienced a 4% decline in output due to lower primary electrolytic production. Japan also saw a decrease in refined copper production by 3.3%. However, global secondary production from scrap increased by 7% to 1.54 million tons in the first four months of the year.
Demand for copper from countries excluding China is estimated to have risen by 1% year-on-year, while China’s demand grew by 6.5%, according to the study group.
The average monthly global copper mine capacity stands at 2.39 million tons, up from 2.29 million tons a year ago. The mine utilization rate improved slightly to 76.7% from 76.4% in the same period last year.
Copper stocks at major exchanges increased by 112%, or 238,628 tons, to 452,478 tons in May compared to the stocks held at the end of December. On the London Metal Exchange, the average cash price for copper rose by 6.8% to $10,129.07 per ton in May from $9,482.43 per ton in April.
At 1425 IST, the most-active three-month copper contract on the LME was trading at $9,759.0 per ton, down 1% from the previous close. 
