VANCOUVER (miningweekly.com) – Global copper mine output was 3% lower year-on-year during the first five months of 2017, according to the latest data from the International Copper Study Group (ICSG).

Concentrate production declined by around 2.5% and solvent extraction-electrowinning (SX-EW) declined by around 4.5%.

The Lisbon-based think tank attributed the decline in world mine production mainly to a 10%, or 220 000 t decline in copper production in Chile, the world’s biggest copper-producing country, which was negatively affected by the strike at Escondida mine and lower output from Codelco mines.

Further, a decline in Canada and Mongolia's concentrate output of 20% and 21%, respectively, mainly owing to lower grades in planned mining sequencing, also weighed on output, while a 14% decline in Indonesian concentrate production was brought about by a temporary ban on concentrate exports, which started in January and ended in April.

An 11% drop in US output, also owing to lower ore grades, reduced mining rates and unfavourable weather conditions at the beginning of the year.

However these reductions in output were partially offset by an 11% and 6% rise in Mexican (concentrate and SX-EW) and Peruvian (concentrate) output, respectively, with both countries benefiting from new and expanded capacity that was not yet fully available in the same period last year.

World refined output is estimated to have remained unchanged in the first five months of the year, with primary output (electrolytic and electrowinning) declining by 2% and secondary output (from scrap) increasing by 12%.

World apparent refined usage is estimated to have declined by around 3% in the first five months of 2017.

According to the ICSG, global refined copper for the first five months of 2017 indicates a surplus of about 15 000 t. This is mainly owing to the decline in Chinese apparent demand. China currently represents around 48% of the world copper refined usage. In the five-month period, world refined copper balance, adjusted for changes in Chinese bonded stocks, indicates a surplus of around 115 000 t.

Based on the average stock estimates provided by independent consultants, China’s bonded stocks increased by around 100 000 t in the first five months of 2017 from the year-end 2016 level. Bonded stocks increased by around 140 000 t in the same period last year.

As at the end of July, copper stocks held at the major metals exchanges, including the London Metals Exchange (LME), COMEX, and the Shanghai Futures Exchange (SHFE) totalled 630 262 t, an increase of 91 189 t, or 17%, compared with stocks held at the end of December 2016. Year-on-year, stocks were down at the LME (-5%) and up at SHFE (22%) and COMEX (93%).

The ICSG noted that the average LME cash price for July was $5 978.60/t, up from the June average of $5 699.48/t.