Copper supply slips into deficit in April

By Staff -- Purchasing, 8/10/2000

The world copper market is so strong that demand outpaced supply by 46,000 tonnes in April, the first deficit for refined copper since mid-1996. The deficit compares with a surplus of 89,000 tonnes in April 1999, according to International Copper Study Group data. World refined copper output for the first four months of this year increased by 3.4% compared with the first four months of 1999, but consumption increased by 6.4% during the same period.

At this rate, the industry is on track to post an annual refined copper deficit for the first time since 1995, when demand outpaced new supply by 373,000 tonnes. In fact, at its annual meeting in Lisbon, Portugal, the International Copper Study Group did forecast a deficit of 80,000 tonnes for this year.

Strong world demand has been evidenced all year in sharp drawdowns from commodity exchange inventories. At the end of June, refined copper stocks at the London Metal Exchange, the Comex division of the New York Mercantile Exchange and Shanghai Metals Exchange totaled 696,524 tonnes, down 6.2% from 742,840 tonnes a month earlier. Total global refined stocks at the end of April-including metal held by exchanges, producers, consumers, merchants and governments-was 1.39 million tonnes, as compared with 1.52 million tonnes in April of 1999

World refined output totaled 4.85 million tonnes in the first four months of this year vs. 4.69 million tonnes in the same 1999 period. Primary production increased by 2.9% to 4.2 million tonnes from 4.08 million tonnes, while secondary production jumped 6.9% to 654,000 tonnes from 612,000 tonnes.