Global Copper market indicates a surplus of about 60,000 tons: ICSG
LONDON (Scrap Register): Global refined copper market balance for the first four months of 2018 indicates a surplus of about 60,000 tons, according to International Copper Study Group.
In developing its global market balance, ICSG uses an apparent demand calculation for China that does not take into account changes in unreported stocks [State Reserve Bureau (SRB), producer, consumer, merchant/trader, bonded].
To facilitate globalmarket analysis, however, an additionalline item—Refined World Balance Adjusted for Chinese Bonded Stock Changes—isincluded in the attached table that adjusts the world refined copper balance based on an average estimate of changes inunreported inventories provided by three consultants with expertise in China’s copper market.
In the first four months of 2018, the world refined copper balance adjusted for changes in Chinese bonded stocks indicated amarket surplus of around 50,000 tons.
China was the biggest contributor to growth with apparentusage (excluding changes in unreported stocks) increasing by around 5%, driven by a 10% increase in net refined copper imports.
Preliminary data indicates that world ex-China usage declined by 1%. Among other major copper using countries, usage increased in India and the EU but declined in Japan, the United States andSouth Korea.
In the first quarter of 2018, the global refined copper balance adjusted for changes in Chinese bonded stocks indicated a market surplus of around 140,000 tons.