WBMS Copper Surplus Brings One More Difficulty Out of The Bag

Copper.......
Traders were already bored to see the pessimism on account of Chinese demand but now the new numbers from World Bureau of Metal Statistics (WBMS) released a few minutes back can pose challenge to the rise of metal.
The agency has said that World copper markets were in surplus of 127200 tonnes in the month of March 2013, as compared to a surplus of 65300 tonnes in February 2013. Meanwhile, the data shows that Copper markets were in surplus of 252700 tonnes in first quarter of this year compared to 192000 tonnes deficit in the first quarter of last year.
Copper was in surplus of 52300 tonnes in whole of 2012. The closing stocks at the end of Jan-March 2013 were 1.30 million tonnes, up 22 percent from the year ending 2012 when stocks were 1.06 million tonnes.
World mined copper production in March 2013 was 1.45 million tonnes, up 7.2 percent from 1.35 million tonnes in February 2013. In Jan-Feb 2013, World mined copper production was 4.25 million tonnes in Jan-March 2013 across globe compared to 3.97 million tonnes in Jan-March 2012.
Refined Production of Copper was 1.79 million tonnes in March 2013, compared to 1.67 million tonnes in February 2013. Production of refined copper in Jan-March 2013 was 5.20 million tonnes, compared to 4.94 million tonnes in Jan-March 2012.
Indian refined copper production in Jan-March 2013 was 1.75 million tonnes in Jan-March 2013 compared to 1.8 million tonnes in Jan-March 2012. Production of refined copper in March was 63900 tonnes, compared to 55900 tonnes in February.
China refined copper production was 1.54 million tonnes in Jan-March 2013 compared to 1.3 million tonnes in similar period last year.
Meanwhile, World refined copper consumption was 4.95 million tonnes in first three months of the year compared to 5.13 million tonnes in Jan-March 2012. Chinese refined copper consumption was 2.05 million tonnes in Jan-March 2013, compared to 2.20 million tonnes in Jan-March 2012.
Refined consumption in US declined by 15 percent to 450000 tonnes in Jan-March 2013 compared to 456000 tonnes in similar period last year.
LME three month Copper prices was trading at $ 7510 per tonne, up from $ 7408 per tonne. The concerns of Chinese demand are well known though the prices posted a confident face at the time of closing. Shanghai August expiry contract closed at 53730 yuan per tonne on Wednesday, up 350 yuan per tonne.
Indian Copper has splurged past Rs 415 per kg and was seen trading at Rs 416 per kg. The decline of Rupee has been the main trigger for Indian prices. Rupee destabilized versus the Dollar and was at 55.5.
Source by Commodity Insights