TORONTO (miningweekly.com) – The market for refined copper showed a surplus of about 150 000 t in August, according to figures published on Monday by the International Copper Study Group (ICSG).

The shift from a surplus of just 2 000 t in July was attributed to lower apparent Chinese usage, based on lower net imports of refined copper, and a decrease in apparent usage in the European Union over the traditional holiday period.

Before July, the ICSG reported five consecutive months of apparent deficit in the refined copper market.

For the first eight months of this year, the group said the market showed a production deficit of 32 000 t, compared with a 117 000 t deficit in the same period during 2008.

“In the first eight months of 2009, world usage is estimated to have decreased by 1,5% compared with that in the same period of 2008,” the ICSG said.

A strong increase in Chinese apparent usage , which rose 45%, was not enough to offset a decrease of 19% in the rest of the world.

Chinese apparent usage increased by 1,5-million tons compared with the first eight months of last year, while copper usage in the other important markets, the EU-15 countries, Japan, and the US, decreased by 23%, 34%, and 23%, respectively.

On the supply side, world mine production of copper grew by 3% in the first eight months of 2009 compared with the same period of 2008, the ICSG said on Monday. Concentrate production rose 1,9%, while solvent extraction-electrowinning production was up by 7,2%.

Lower output in the two leading world producers, Chile and the US, as well as Canada, which totalled about 180 000 t, partially offset growth in other countries.

The capacity utilisation rate in August was 79,7%, slightly above the average of the previous seven months, the group said.

In the January to August period, world refined production decreased by 0,8% compared with the same period of 2008.

Announced production cuts led to decreases in refined production of around 6% in Europe, 12% in North America, and 1% in Asia (excluding China).

Increases of around 9% in Chile and 4% in China were not enough to offset decreases in the other regions.