ICSG Expects Copper Market To See Deficit Of About 328,000 t For 2022; 155,000 Tonne Surplus In 2023

20 Oct 2022 , 04:30 PM

The ICSG report reported that world copper mine production in 2022, although continuing to increase, has underperformed vis-?-vis ICSGs April 2022 expectations, leading to a downward revision in growth rates from 5% to 3.9%. Continued COVID-19 related restrictions and workforce absenteeism, operational and geotechnical issues, strikes, water restrictions in Chile, lower than expected head grades and community actions in Peru have constrained mine output at a number of operations this year. 2022 projected growth for world refined production was revised down from 4.3% to 2.8% due to unexpected output constraints at a number of primary smelters, delays in the ramp-up of SXEW plants and unexpected or longer than expected maintenance shutdowns. These occurred mainly in Chile, Brazil, Mexico, the United States, Zambia and some EU countries. Also, the world apparent refined copper usage is likely to witness a growth of 2.2% in 2022 and 1.4% in 2023, both down considerably when matched with ICSGs April 2022 forecasts. ICSG expects a deficit of about 328,000 t for 2022 mainly due to high Chinese apparent usage and constrained growth in copper production. A surplus of about 155,000t is expected in 2023 due mainly to additional supply. Powered by Commodity Insights