Metalnewsnet 5 May:

The refined copper market will be in a surplus of about 580,000 tonnes in 2010 as growing supply exceeds weak industrial demand, according to a forecast by the International Copper Study Group (ICSG).

But that surplus is expected to shrink in 2011 due to an anticipated pickup in economic activity. In 2011, the surplus will drop 58.6 percent to 240,000 tonnes, the Lisbon, Portugal-based group said.

In 2010, world mine production will increase 6.7 percent to 16.8 million tonnes, with capacity utilization rates climbing to an average of 84 percent this year from 80.7 percent in 2009. Mine production growth will slow in 2011, however, when the world will log only a 2.9-percent output rise "due to deferrals and delays in projects prompted by the 2008 economic crisis," the ICSG said.

While mine production is on the rise in 2010, refined copper usage will drop off, falling 1.5 percent to 17.9 million tonnes. An average increase of 6.9 percent in the United States, the European Union, and Japan will be more than offset by a 13-percent decline in apparent usage in China this year, the ICSG said. Demand will recover in 2011, however, rising 5 percent to 18.9 million tonnes.