Copper In Production Deficit Of 40000 Tonnes In Jan-Nov 2010

World Copper market was in production deficit of 400000 tonnes in Jan-Nov 2010, as per the latest estimates by International Copper Study Group (ICSG). This compared to a production surplus of 98000 tonnes in Jan-Nov 2009. Seasonally adjusted deficit was 257000 tonnes during the period. For the month of November Copper showed a mild surplus of 5000 tonnes.

World mine production during Jan- Nov 2010 was up by small margin of 0.7% to 14.62 million tonnes, as against 14.52 million tonnes in Jan-Nov 2009. ICSG said that Chile mine production was practically unchanged while combined output from Peru, United States, Australia and Indonesia, that combined represent around 25% of total world copper mine production, decreased by an aggregated 6.5%. Mine capacity utilization was down to 80.2% as against 81.6% in Jan-Nov 2009.

World refined production in Jan-Nov 2010 stood at 17.37 million tonnes, up 4.2% from 16.67 million tonnes in corresponding period previous year. A major growth in refined production was due to growth in secondary production (scrap). This attributed in the rise of 71%. This is an indicator of the declining supplies from the world mines and more onus on scrap markets. Secondary production grew by 20% while a growth of 1.4% was registered in primary refined production. World refined metal usage was 17.77 million tonnes in Jan-Nov 2010 as against 16.57 million tonnes in Jan-Nov 2009.

Meanwhile, Indian Copper futures were seen trading in red at Rs. 443.3 per kg, down Rs. 1.6 per kg in early opening trades. The prices are likely to remain soft at Rs. 440 per kg. Resistance for the contract is at Rs. 445.5 per kg.

(Source: http://www.indiainfoline.com/Markets/News/Copper-In-Production-Deficit-Of-40000-Tonnes-In-Jan-Nov-2010/3572823793)