Global Refined Copper Production and Consumption Rise in Q1, Increasing Surplus

The global production of refined copper increased by 5.3% year-on-year to 6.86 million tonnes in the quarter ended March, while consumption rose by 4% to 6.58 million tonnes, according to a report released by the International Copper Study Group on Wednesday. This led to an increase in the surplus of the red metal to 287,000 tonnes from 200,000 tonnes in the same period last year.

China, the largest producer of refined copper, saw its production rise by 6.5% year-on-year in January-March, driven by the commissioning and expansion of primary and secondary smelters and refineries. In the Democratic Republic of Congo, production surged by 34% due to the continued ramp-up of new or expanded electrowinning plants. Together, China and Congo account for approximately 54% of the world's refined copper production.

In contrast, Chile, the second-largest producer, experienced a 5% decline in output due to lower primary electrolytic production. Japan's refined copper production also fell by 3% year-on-year.

Global secondary production from scrap increased by 7.8% to 400,000 tonnes in the first quarter of the year.

During the January-March period, copper demand from all countries excluding China grew by an estimated 0.7% year-on-year. Demand from China itself increased by 6.5%.

The average monthly global copper mine capacity currently stands at 2.38 million tonnes, up from 2.28 million tonnes a year ago. The mine utilization rate rose to 77.0% from 76.0% in the previous year.

Copper stocks at major exchanges rose by 99.8%, or 213,374 tonnes, to 427,224 tonnes in April compared to the end of December.

The average cash price of copper on the London Metal Exchange (LME) increased by 9.3% to $9,482.43 per tonne in April, up from $8,675.63 per tonne in March. However, at 1636 IST, the most-active three-month copper contract on the LME was down 0.7% from the previous close, trading at $10,353.0 per tonne.