ICSG: Global Copper Mine Production Falls 1.3% In Q1 2019
MetalMiner | Jul 01, 2019 04:41AM ET
According to the International Copper Study Group’s (ICSG) most recently monthly report, global copper mine production dropped 1.3% in Q1 2019 compared with the same quarter the previous year.
In addition, concentrate production fell 1% and solvent extraction-electrowinning fell 3.5%.
Top copper producer Chile saw production fall 5% in the quarter. More recently, a two-week strike at Codelco’s Chuquicamata mine reportedly came to an end last week, as the labor unions representing workers at the mine voted to accept an offer from the company.
Meanwhile, Indonesian concentrate production fell 52%. In the Democratic Republic of the Congo, production rose just 1.7% in Q1 after a total 11% jump in 2018.
While not enough to offset losses in Chile and Indonesia, production gains were realized in No. 2 producer Peru, Australia, China and Mongolia, according to the ICSG.
Global refined production also fell in the first quarter, dropping 1.1%, as primary production fell 1.5% while secondary scrap production increased 0.7%.
Chile’s refined output fell 32% “mainly to temporary smelter shutdowns whilst undergoing upgrades to comply with new environmental regulations.” Indian production fell 45% as Vedanta’s Tuticorin smelter remains shuttered.
Refined output was also down in Germany, Japan, Peru and the U.S.
However, apparent refined usage increased 0.8% in Q1, paced in part by a 4% increase in usage in China. World usage ex-China fell 2%.
In terms of prices, the average May price on the LME reached $6,028.31 per ton, down 6.5% from April’s average $6,445.10 per ton.
Meanwhile, through the end of May, the high copper price on the LME was $6,572 per ton (reached March 1), with a low of $5,780.50 per ton (reached on May 31). The average price for the year through May was $6,221.50 per ton, marking a 4.6% decline from the 2018 annual average.
By Fouad Egbaria
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.