Kobber marked forecast 2019/2020 (kilde: ICSG)
RELEASE Date Issued: 23rd October 2019
Copper Market Forecast 2019/2020
The International Copper Study Group (ICSG) met in Lisbon, Portugal on 22-23 October 2019. Government delegates and
industry advisors from most of the world’s leading copper producing and using countries participated to discuss key issues
affecting the global copper market. In the meeting of the Statistical Committee, the ICSG view of the world balance of refined
copper production and use was developed.
After an increase of 2.5% in 2018, world mine production, adjusted for historical disruption factors, is expected to decline by about
0.5% in 2019 and then to grow by around 2% in 2020:
World mine production increased by 2.5% in 2018 mainly due an unusually low rate of overall supply disruptions.
However, this year production has been significantly constrained by unforeseen disruptions in Africa and an anticipated sharp decline
in output in Indonesia as the transition of the country’s major two mines to different ore zones has resulted in temporarily reduced
The Group’s forecast for African mine and refined production is significantly lower than its April forecast as a consequence of recent
announcements regarding suspensions at SX-EW mines, reductions in planned production and temporary smelter shutdowns.
In addition, production growth in some major producing countries including Chile, the United States and Peru has been limited by
declining ore grades and other disruptions.
Increased production from new mine projects including Cobre de Panama in Panama, the Toquepala expansion in Peru as well as
rises resulting from a recovery from constrained output in 2018 will only partially offset the aforementioned declines.
In 2020, additional supply, mainly resulting from the ramp-up of recently commissioned mines together with a recovery in Indonesian
output and improved production in Africa should support growth of about 2% (adjusted for possible supply disruptions)
In 2021, growth may be above 2% but will depend on currently committed projects starting on schedule.
World refined production is expected to increase by about 0.5% in 2019 and around 4% in 2020 respectively:
In 2019, global refined copper production growth has been significantly constrained by an unusually high number of smelter disruptions
and temporary shutdowns for technical upgrades/modernizations. This has resulted in significant declines in planned output in Chile,
the DRC and Zambia as well as reductions in the EU, Japan, India and the United States. The reductions in the DRC have been at
SX-EW mines and therefore have had a direct negative impact on refined production (electrowinning).
Continued expanded refinery capacity in China, and to a lesser extend the recovery from 2018 operational issues/maintenance at
smelters in Australia, Brazil, Indonesia, Poland will more than offset declines in other countries, with world refined production expected
to grow by a modest 0.5% in 2019. On an ex-China’s basis, world refined production is expected to decline by 2.5%.
A rise of around 4% is expected in world refined production in 2020 based on capacity expansion in China, improvements in Africa
and a return to full capacity of numerous smelters/refineries affected by operational issues this year.
The 4% growth expected for 2020 is higher than that put forward by the Group in April. This is mainly due to the fact that planned
electrolytic refined production is not expected to be limited by tightness in the availability of concentrates as much as previously
After a small decline in 2018, world secondary production from scrap is expected to rise by a small amount in both 2019 and 2020.
World apparent refined usage is expected to increase by around 0.3% in 2019 and about 1.7% in 2020:
Sustained growth in copper demand is expected to continue because copper is essential to economic activity and even more so to the
modern technological society. Infrastructure development in major countries such as China and India and the global trend towards
cleaner energy will continue to support copper demand. However, a slowdown in world economic growth is expected to have an
adverse impact on world refined copper usage growth in 2019 and 2020.
In 2019, world refined usage has been impacted by lower than expected growth in Chinese demand and by a significant decline in EU
Although underlying “real” demand growth in China is estimated by some analysts to be around 1.5% in 2019, Chinese apparent
demand is predicted to rise by only 1% as it has been impacted by a decline in net refined copper imports. In 2020, growth of around
1% is forecast for both apparent and real usage.
EU usage is significantly lower than previously anticipated due to a weaker economic environment negatively affecting different enduse
sectors combined with the dampening effect on cathode demand of good scrap availability. Recovery of 1.5% is expected in 2020.
The outlook for Japan remains sluggish and demand in the United States continues to rise this year but levelling off in 2020.
World refined copper balance projections indicate a deficit of about 320,000 t in 2019 and a surplus of about 280,000t for 2020:
ICSG recognizes that global market balances can vary from those projected owing to numerous factors that could alter projections for
both production and usage namely the current US-China trade issues, strength of the global economy especially the Chinese. In this
context it can be noted that actual market balance outcomes have on recent occasions deviated from ICSG market balance forecasts
due to unforeseen developments.
In developing its global market balance, ICSG uses an apparent demand calculation for China that does not take into account changes
in unreported stocks [State Reserve Bureau (SRB), producer, consumer, merchant/trader, bonded]. Apparent copper demand for
China is based only on reported data (production + net trade +/- SHFE stock changes) and does not take into account changes in
unreported stocks [State Reserve Bureau (SRB), producer, consumer and merchant/trader], which can be significant during periods
of stocking or de-stocking and which can markedly alter global supply-demand balances.
Market developments since ICSG April forecast have led to revisions in predictions for supply and demand and therefore in the market
balance. Current ICSG projections are for a deficit of about 320,000 metric tonnes (t) in 2019, compared to a deficit of 190,000 t
foreseen at its April 2019 meeting. For 2020, the Group now forecasts a surplus of 280,000 t compared to the deficit of 250,000 t put
forward at its April meeting.
Next Meetings of ICSG
The next Meetings of the International Copper Study Group will be held in Lisbon, Portugal in the period 23-24 April 2020
(World Refined Copper Usage and Supply Forecast table on next page).