Gold Silver Reports — The International Copper Study Group (ICSG) published the latest monthly report showed in December 2016, global copper supply surplus of 17000 tons, the total shortage of 5,500 tons in whole year, was below the supply shortages of 164000 tons for 2015. ICSG data showed that in December last year, the mine produced 1.771 million tons, global mine production capacity reached 2.035 million tons, mining capacity utilization rate was 87%.
Bad news for Freeport since late January has helped support copper prices. About half of the capacity of its Cerro Verde mine in Peru has been sidelined by a labor strike. Meanwhile, Chiles Escondida mine majority-owned by BHP also has seen work stoppages. Copper has hit a one-week low as talks to resolve a strike at the worlds biggest copper mine in Chile were set to resume and production at another huge mine in Indonesia restarted.
Perus copper production rose 24.8 per cent in January from the same month a year earlier while zinc output increased 11.3 per cent. Traders said a weak trend in base metals in global market on worries about demand from worlds top consumer China were reinforced by expectations of ample supplies and higher inventories in exchange-monitored warehouses, mainly dampened sentiment. — Neal Bhai Reports
