MTECHTIPS ;-Copper Edges Up From Three Month Low

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MTECHTIPS ;-Copper Edges Up From Three Month Low

MTECHTIPS-COMEX Copper recovered from a three month low on prospects of improving demand for industrial metals as the US Fed hiked interest rates and raised economic forecasts. The International Copper Study Group (ICSG) stated that world refined copper balance for 2017 indicates a deficit of about 163,000 t. This is mainly due to an almost stagnant situation in world refined copper supply. World mine production is estimated to have declined by around 2% in 2017, with concentrate production declining by 1.6% and solvent extraction-electrocuting¬†(SX-EW) by 3%: Mine production fell 4% YoY in the 1st half of 2017 due to a series of supply constrains but the situation improved in the 2nd half with output remaining essentially flat YoY but increasing by 10% compared to the 1st half 2017. The reduction in world mine production was mainly due to: A 1% decline in Chile, the world’s biggest copper mine producing country which was negatively affected by the strike at the Escondida mine in the first part of the year and lower output from Codelco mines