The copper market production is expected to increase by 5% in both 2015 and 2016, to reach 19.5 million tons and 20.5 million tons respectively

BANGALORE, INDIA, September 25, 2015 /EINPresswire.com/ -- The global copper market went through a rough time in 2014. The world refined copper production is expected to exceed apparent refined copper demand by 365,000 metric tons in 2015, according to industry experts.

A second consecutive production surplus year relative to demand can be expected for 2016 also. As demand growth outpaces the production-growth, the production of copper from mines is expected to be lower at 230,000 tons in 2016 compared to the same figure in 2015.

However, the projections and predictions are based on the current market scenario and there can be changes and alterations in the demand and production dependent on unforeseen developments.

Taking cue from the copper market, experts predict that after underperforming in 2014 with growth of just 2.4%, the global copper mine production, after adjustment made for historical disruption factors, is expected to increase by around 5% in both 2015 and 2016 to reach 19.5 million tons and 20.5 million tons respectively.

The increase in production is expected to originate from the expansions at existing mining operations, increase in production from mines that have recently come on stream and additional output from a new mine project.

New production from the mines is expected to be in the form of copper concentrate.

The global refined copper production in 2015 is expected to increase by around 4% year-on-year to 23.4 million tons after growing at 7% in 2014. This growth is primarily expected from capacity expansions at electrolytic plants in China and from higher SX-EW capacity in Africa to an extent.

Riding on the back of increased availability of copper concentrate the primary refined copper production, excluding SX-EW, is expected to grow by 6% in 2015. On the other hand there is an expected decline in the secondary production in the same period by 2%, primarily due to the continued tightness in the scrap market.

The global refined copper production is expected to grow further by around 2.5% to 24 metric tons in 2016. Industry experts are of the view that the global apparent refined copper usage in 2015 will increase by only 0.6%, while the same figures were around the 7% mark in 2014.As already mentioned, this drop in growth is expected from a decline in actual usage of the metal in China, which is forecast to grow at only around 1% in 2015 even as the overall Chinese economy grows at 3%-4% during the same period.

China plays a vital role in the global demand and market for copper as the country is the leading global consumer of copper and accounts for about 40% of world demand.

The demand for refined copper is expected to remain flat from the rest of the world. In the year 2016, Chinese economy is expected to grow at around 5% and the growth in the global demand for apparent refined usage is expected at around 3% where demand from the rest of the world is expected to increase by about 2%

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