Copper still in deficit
L’USINE NOUVELLE from 5.10.11
With consumption of copper on the decline, even the slight increase in mining production will not be enough to bring the market back into balance.
According to the International Copper Study Group, the deficit - which was 350,000 tonnes in 2010, will be 200,000 tonnes in 2011 and 250,000 tonnes in 2012. The change in worldwide demand remains weak at 1.5% in 2010, but mining operations are declining. Following the fall in its mining at the beginning of the year, China - a key player in the sector - is seeing its consumption and its soliciting increase, allowing the world deficit to be contained. This trend should be confirmed in 2012 with a Chinese increase of 3.6%, and 2% for the rest of the world.
The usage rate of mining facilities has moved from 1% to 79%, with new mining locations still insufficient to make up for recurring mining-related problems (quality of the ore, weather, strikes).
In addition, following a steep rise at the beginning of 2011, secondary copper production should only increase by 5% in 2012. With the European industrial sector in a clear decline, it will produce less copper-containing waste, stepping up the need for the primary metal.
Summary of article by Daniel KRAJKA
SOFILEC at 
