Have a read guys. I posted the chart in the photo gallery

-Firestarter

ICSG PRESS RELEASE Date Issued: 20th March 2012

Copper: Preliminary Data for 2011

The International Copper Study Group (ICSG) released preliminary data for 2011 world copper supply and demand in its March 2012 Copper Bulletin. The Bulletin is available for sale upon request.

According to preliminary ICSG data, the refined copper market balance for December 2011 showed a production surplus of 41,000 metric tonnes (t) despite record-high Chinese apparent usage* (831,000 t), as usage was weak in the other major consuming regions due to the yearend holiday period. The world apparent refined copper balance for the full-year 2011, including revisions to data previously presented, indicates a production deficit of 358,000 t, nearly equal to the deficit of 377,000 t in 2010.

In 2011, world usage of refined copper grew by around 3% (610,000 t) to 20 Mt, principally owing to increases in Chinese and Russian apparent usage of 7% and 60%, respectively. Russia’s apparent usage reflected a 56% decline in net refined exports and a commensurate 80% increase in their net exports of semifabricates. Growth in the United States and the European Union (EU) weakened as the year progressed, and in 2011, usage grew by a modest 0.1% in the United States and declined by 1.3% in the EU. Japanese usage, affected by the earthquake/tsunami, was down by 5% in 2011. On a regional basis, usage increased in Africa by 1%, in Asia by 3.5%, and in Europe by 5.5%. Usage decreased in the Americas by 1% and in Oceania by 7%.

In 2011, world mine production continued to underperform relative to capacity and remained at the same levels of 2010 (16 Mt); concentrate production declined by around 1% to 12.6 Mt while solvent extraction-electrowinning (SX-EW) rose by 3.5% to 3.4 Mt. Operational failures, labour unrest, and lower ore grades resulted in production levels not keeping pace with the growth of capacity. According to ICSG production and production capacity data, the average global mine capacity utilization rate fell to about 79% in 2011 and was at the lowest level in at least 20 years. Production in Chile, the biggest world producer, declined by 3.2% and was 5.5% below that in 2007. Output from other major producers such as Peru, the United States, Australia and Indonesia, that combined represent around 25% of total world copper mine production, decreased by an aggregated 6%. Production in China, currently the second leading copper mine producer, increased by 12% in 2011. On a regional basis, copper mine production increased in Africa (7%), the Americas (0.2%), Europe (3%), and Oceania (6.7%), and declined in Asia (-6%).

World refined production increased by 3% in 2011 compared with refined production in 2009: primary production was up by 2.3% and secondary production (from scrap) was up by 8.2%. Production increases of 13% in Australia (recovery from 2010 operational constraints), 14% in China, and 40% in the Democratic Republic of Congo were partially offset by declines of 4.7% in Chile, 5.7% in the United States, 14% in Canada and 14% in JapanThe refined production capacity utilization rate in 2011 of 79.7% remained essentially unchanged from that in 2010. On a regional basis, refined production increased in Africa (11%), Asia (6%), Europe (4.5%) and Oceania (12.5%) but decreased in the Americas (-3.5%)

The average LME cash price for February 2012 was US$8,422.69 per tonne, up from the January average of US$8,043.45 per tonne. The 2012 high and low copper prices through the end of February were US$8,658 and US$7,471 per tonne, respectively, and the average was US$8,233.07 per tonne. As of the end of February, copper stocks held at the major metal exchanges (LME, COMEX, SHFE) totalled 591,459 t, an increase of 23,277 t from stocks held at the end of December 2011 but an increase of 49,720 t compared to January 2012. Compared to the January levels, stocks were down at LME and up at Comex and SHFE.

Please visit the ICSG website www.icsg.org for further copper market related information.

* China’s apparent copper usage is based only on reported data (production + net trade +/- SHFE stock changes+/-industry stock changes, if reported) and does not take into account changes in unreported stocks [State Reserve Bureau (SRB), producer, consumer and merchant/trader], which may be significant during periods of stocking or de-stocking.

World Refined Copper Usage and Supply Trends, 2006-2011

Thousand metric tonnes, copper

Due to the nature of statistical reporting, the published data should be considered as preliminary as some figures are currently based on estimates and could change

1/ Based on EU apparent usage. 2/ Surplus/deficit is calculated using refined production minus refined usage. 3/ Surplus/deficit is calculated using seasonally adjusted refined production minus seasonally adjusted refined usage.