Commodities Buzz: World Copper Mine Production Up 3% In First Seven Months Of 2022

22 Sep 2022 , 12:29 PM

The International Copper Study Group (ICSG) released preliminary data for June world copper supply and demand in its September 2022 Copper Bulletin. Preliminary data indicates that world copper mine production increased by about 3% in the first seven months of 2022, with concentrate production increasing by around 2 % and solvent extraction-electrowinning (SX-EW) by about 7%. Restrictions related to Covid-19 and sustained rates of infection due to the Omicron variant continued to constrain mine output in a number of countries at the beginning of 2022. However, global mine output benefited from additional production at new or expanded mines and from a recovery from reduced output in the first months of 2021 when more stringent Covid-19 related restrictions where in place. Production in Chile, the world’s largest copper mine producing country, was down by 6% with concentrate production falling by about 9% and SX-EW output increasing by 2.5%. A number of mines in the country have been negatively impacted by absenteeism related to Covid-19 infections, lower grades and reduced water supply due to a long drought. Growth in mine output in Peru, the world’s second largest copper mine producing country, was limited to 1.5% as a consequence of an extended stoppage at two major copper mines (Cuajone and Las Bambas) due to local communities’ actions. Production over the first seven months of 2022 was 7% below that of the same period of 2019 (pre-COVID). Preliminary data indicates that world refined copper production increased by about 3% in first seven months of 2022 with primary production (electrolytic and electrowinning from ores) up by 4% and secondary production (from scrap) down by 2%. Preliminary official Chinese refined production data indicates a rise of about 2% with primary production increasing by about 2.5% and secondary production by 0.6%. Preliminary data indicates that world apparent refined copper usage grew by about 2.5% in the first seven months of 2022. COVID-19 related lockdowns had a notable negative impact on the world economy and subsequently on key copper end-use sectors in all regions ex-China. Preliminary world refined copper balance in the first seven months of 2022 indicates an apparent deficit of about 126,000 t.Powered by Commodity Insights