Global Refined Copper Production Rises 4.2% in 2024, Creating Market Surplus
Global refined copper production increased by 4.2% to 27.63 million tonnes in 2024, while consumption rose by 2.9% to 27.33 million tonnes, according to a report by the International Copper Study Group. This resulted in a surplus of 301,000 tonnes, contrasting with a deficit of 52,000 tonnes recorded in the previous year.
In December, the copper market deficit narrowed to 22,000 tonnes from 124,000 tonnes in November. Monthly refined copper production rose by 1.6% to 2.37 million tonnes, while consumption declined by 2.6% to 2.4 million tonnes.
China, the largest producer of refined copper, saw production increase by 4% in 2024 due to new and expanded smelters and refineries. The Democratic Republic of Congo recorded a 17% production increase due to the ramp-up of electrowinning plants. Combined, China and Congo accounted for 54% of the world's total refined copper production. In contrast, Chile's refined copper production declined by 6.5%, primarily due to a reduction in primary electrolytic and electrowinning production. Japan’s output rose by 5%, and global secondary production from scrap increased by 2% to 4.58 million tonnes.
Copper demand outside China rose by 2.2%, as weak demand in the European Union, Japan, and the United States was offset by increased demand from several Asian, West Asian, and North African countries. China’s copper consumption grew by approximately 3.5%.
The average global copper mine capacity in 2024 was 2.38 million tonnes, compared to 2.29 million tonnes in 2023. However, the mine utilization rate declined from 81.4% in 2023 to 80.1% in 2024.
Copper stock levels at major exchanges increased by 3.8% in January to 446,569 tonnes. On the London Metal Exchange (LME), the average cash price rose by 0.7% to $8,977.6 per tonne in January, compared to $8,919.53 per tonne in December. As of 1322 IST, the most-active three-month copper contract on the LME was priced at $9,505 per tonne, down 0.6% from the previous close.
