Copper use growing but rate is somewhat muted

By Tom Stundza -- Purchasing, 4/30/2008 11:53:00 AM

Significantly lower growth in the use of refined copper by China and another year of declining consumption in the U.S., Japan and Europe are expected to result in a lower world use growth rate of about 2% in 2008—as compared with an increase of almost 6.5% in 2007. Still, that will be 18.1 million metric tons of use, according to the latest forecast from the International Copper Study Group.

A press release from the commodity council also projects that world copper use will rebound in 2009 to a solid growth rate of 5% to reach 19.5 million metric tons. To meet this year’s slow-growth demand curve, world production of refined copper is projected to reach 18.6 million metric tons in 2008, an increase of almost 3% above 2007 output.
Refined production in 2009 is projected to increase by another 7% to 19.9 million metric tons, an increase of about 1.3 million metric tons compared with this year’s output. Refinery production increases are expected next year in China, India, Japan, Chile, Africa and the U.S. to meet the projected 5% growth in demand.