Every why hath a wherefore

Copper Demand

An interesting snippet from today’s Reuter’s Metals Insider daily. Unseen outside of the Reuter’s paywalled service til today.
ICSG sees copper market in 400,000T deficit in 2011
LONDON, Oct 1 (Reuters) – The global market for refined copper is expected to swing into a 400,000-tonne deficit for 2011 as increased economic activity boosts demand to outstrip growth of refined production, the International Copper Study Group said.
The group revised its forecast to a deficit from an estimate of a 240,000 tonnes surplus, made in April. “In 2011, refined usage is again expected to increase in all major world markets, with global demand expected to rise by about 4.5 percent,” the ICSG said in a note on Friday. “Industrial demand growth for copper in China, which is based on anticipated semi-manufacture production, is expected to grow by about 6 percent in 2011,” it said. China is the world’s top consumer of copper, accounting for about one third of total demand.
The group also revised its 2010 forecast to a 200,000 tonne surplus, from an April estimate of 580,000 tonne surplus as growth in copper supply matches growth in copper demand, roughly in line with levels seen in 2009. During 2012, the market is expected to be more closely balanced, as an increase in refined copper production more than keeps pace with sustained demand growth.

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