The International Copper Study Group (ICSG) recently unveiled preliminary figures which showed a global rise of approximately 5.3% in refined copper production in March 2024.
Primary production derived from electrolytic and electrowinning processes rose by 4.7%, while secondary production from scrap jumped by 7.8%. The growth was mainly driven by China and the DRC, which together account for 54% of global refined copper production. Elsewhere, production increased by just 0.2%.
Total refined copper production in Chile decreased by approximately 5%, with electrolytic production falling by 7.5% and electrowinning output dropping by 3.5%.
Mine production
World copper mine production increased by about 6% in the first quarter of 2024 reaching 5.52 million tonnes (mnt) compared to 5.20 mnt during the same period last year, This growth was driven by a recovery from 2023’s lower output in Chile, Indonesia, Peru, and the US, as well as additional output from new mine projects reaching full capacity, particularly in the DRC.
Chile’s production increased by 3.2%, with concentrate output rising by 5.5%. Similarly, in Peru, copper mine production rose by 3.5%, recovering from reduced output at the beginning of 2023 when local community actions impacted the operations of several mines.
DRC output grew by 24%, driven by the Kamoa mine expansion and increased capacity at other mines. Indonesian output rose by 38%, recovering from operational issues at Grasberg and Batu Hijau mines in early 2023 due to heavy rainfall and landslides. U.S. output increased by 10%, rebounding from reduced production in the first quarter of last year.
Meanwhile, Panamanian output ceased as production at the Cobre Panama mine was suspended in November 2023. Chinese production declined by 5% as the Jiama mine is still ramping up after being suspended in March 2023.
Global refined copper usage
Global apparent refined copper usage grew by about 4% in the first quarter of 2024. This growth was primarily driven by strong apparent demand in China, while usage in the rest of the world increased by an estimated 0.7%.
Chinese apparent demand (excluding changes in bonded and unreported stocks) grew by approximately 6.5%, with net refined copper imports increasing by 30%.
Copper stocks
China’s bonded stocks are estimated to have increased by about 48,000 tonnes (t) in the first quarter of 2024 compared to the end of 2023.
As of the end of April 2024, copper stocks held at major metal exchanges (LME, COMEX, SHFE) totalled 427,224 t, reflecting an increase of 213,374 t (+99.8%) from the end of December 2023. Stocks rose significantly at SHFE (+833%) and COMEX (+25%), while they decreased at the LME (-29%).