Global demand for refined copper will outstrip the supply in 2012 by 400,000 tons says the latest report by the International Copper Study Group (ICSG) released yesterday.

“According to ICSG projections for 2012, world demand for refined copper is expected to exceed production of refined copper by about 400,000 metric tonnes (t), as supply will continue to lag behind the growth in demand. This would be the third consecutive year of production deficit. In 2013, however, increased output from new and existing mines could reverse the 3-year trend, and refined copper production could exceed demand by an amount about equal to the 2012 shortfall,” says ICSG in its report available here.

Excluding China, global demand is to shrink by 1%.

“Chinese apparent usage growth of 8% and a growth of 1.4% in the United States will offset declines in the European Union and Japan,” says ICSG.

ICSG sees increase in China copper demand for 2013 by 5% while demand in rest of the world is seen dropping by 3.4%.