(%)
In 2022, the LME copper price averaged at
8,797
USD/t
Sources: producer reports, Company analysis as of 3 March 2023
Macroeconomic and geopolitical factors were the main driving forces of the copper market in 2022. Volatile demand in China, tough policies by the Fed and other central banks, strikes and social unrest in Latin America, Russian metal supply risks, low exchange and warehouse stocks, the push for transport electrification, and new renewable capacity additions all combined to slow the copper market in 2022.
The metal was traded within a wide range of USD 7,000–10,700/t during the year. It peaked in March amid geopolitical concerns and mine disruptions in South America, then corrected to USD 7,000/t by the middle of summer on the back of the interest rates hikes, stronger US dollar and subdued economic activity in China. Subsequently, the copper price bounced back to the range of USD 8,000–8,900/t against the backdrop of a more dovish Fed rhetoric, the threat of strikes in Latin America, low metal inventories, and a more optimistic outlook for the Chinese economy after the Communist Party congress and the lifting of COVID-related restrictions.
In 2022, the LME copper price averaged at
8,797
USD/t
In December 2022, the total exchange stocks (LME, SHFE and CME) were at an extremely low level of 190 kt, roughly flat year-on-year, while China’s bonded stocks decreased dramatically by 71% since the beginning of the year to 55 kt, which is the lowest level for more than 10 years.
In 2022, the LME copper price averaged at USD 8,797/t vs USD 9,317/t in 2021 (down 6%).
Refined copper consumption by region in 2022(%)
Average annual copper prices(USD/t)
Source: London Metal ExchangeSource: London Metal Exchange
LME copper price in 2022(USD/t)
In 2022, copper mine output
21.9
mln t
+
4
%y-o-y
In 2022, copper mine output increased by 4% to 21.9 mln t and refined copper production by 1% to 24.6 mln t. Global refined copper consumption totalled 24.8 mln t, up 1%. Overall, the copper market was balanced in 2022 with an immaterial deficit amounting to 231 kt, or less than 1% of global consumption.
Copper market balance(kt)
In Russia, copper consumption stayed flat y-o-y at
about
300
kt
First use(%)
End use by industry(%)
In Russia, copper consumption stayed flat y-o-y at
about
300
kt
Source: London Metal Exchange
Thanks to its high electrical and thermal conductivity, ductility and corrosion resistance, copper is widely used in various industries. Up to 75% of refined copper produced globally is used to make electrical conductors, including various types of cable and wire. Key copper-consuming industries include construction, electrical and electronic equipment, power industry, transport, machine building, and the production of various equipment and consumer goods. Copper is also a key material for renewable energy development (solar panels, wind farms) and transport electrification (batteries, wiring, electric motors, and charging infrastructure).
In 2022, global refined copper consumption totalled 24.8 mln t, up 1% y-o-y.
With its 55% share of global consumption, China remains the largest copper consumer globally. Despite strict COVID-related restrictions throughout the year followed by lockdown lifting, China ramped up its domestic consumption to 13.6 mln t, or up 2% y-o-y. In 2022, China increased its imports of copper products, including refined copper to 3.7 mln t, or up 7% y-o-y, scrap to 1.8 mln t, or up 5% y-o-y, and concentrates to 25.3 mln t, or up 8% y-o-y.
Demand in Europe and North America remained flat year-on-year at 3 mln t and 2.2 mln t, respectively, while Asia (excluding China) showed a 2% growth to 5.1 mln t. In Russia, copper consumption stayed flat year-on-year at about 300 kt.
Global copper mine production rose by 4% to 21.9 mln t in 2022 as a result of the commissioning of new projects and the expansion of brownfields.
In 2022, copper mine production in Chile, the world’s leading producer of the metal, declined 5% y-o-y to 5.3 mln t. Peru, the world’s second-largest producer of copper, managed to increase its copper mine output by 4% to 2.4 mln t.
An 18% increase in Africa’s mining production to 3.4 mln t was mainly due to a higher output from mines in the Democratic Republic of the Congo.
China ramped up its production by 7% to 1.88 mln t, while copper mine production in Indonesia grew 26% to 0.95 mln t.
Production in North America was down by 2% y-o-y to 2.45 mln t, with US production up by 1%, a decline of 10% in Canada and a drop of 1% in Mexico.
Refined copper output also rose by 1% to 24.6 mln t. In 2022, South and Central Americas produced 2.6 mln t of refined copper (down 2% y-o-y), Africa grew its output by about 12% y-o-y to 1.8 mln t, and Asia increased its refined copper production by 2% y-o-y to 14.8 mln t, including China up 2% y-o-y to 10.6 mln t and Japan up 3% y-o-y to 1.5 mln t. Europe produced 3.5 mln t, roughly 4% down y-o-y, while North America produced 1.6 mln t (down 1% y-oy).
Production of refined copper(mln t)
Source: Company dataSource: Company data
Copper is a soft and malleable metal that is used in:
Copper is used in a variety of industries such as manufacturing, construction and transportation. Copper is essential to all living organisms as a trace dietary mineral. The adult human body contains between 1.4 and 2.1 milligrams of copper per kilogram of body weight. The green energy transition is anticipated to significantly increase demand for copper because of its uses in expanding electricity networks and clean energy technologies, such as electric vehicles.
This pie chart shows the major global uses of copper in 2021 (data for 2022 is unavailable). The largest use was for equipment manufacturing (32%), followed by building construction (28%), infrastructure (16%), transportation (12%) and industrial uses (12%).
Canada has almost 900 million tonnes of copper reserves in abundant deposits of sulphide and porphyry. Usually, copper is extracted as a co-product of other metals including gold, molybdenum, zinc, nickel and lead.
Canadian mines produced 510,782 tonnes of copper in concentrate in 2022, a 0.3% increase from a decade low of 509,350 tonnes in 2021. Canadian production decreased 17.7% overall between 2013 and 2022, from 620,989 tonnes to 510,782 tonnes.
The five copper refineries in Canada are in Newfoundland and Labrador, Quebec, Ontario and Alberta.
This bar graph shows Canada's annual mine production of copper from 2013 to 2022. Production was 620,989 tonnes in 2013 and increased gradually to a peak of 697,322 tonnes in 2015. Production then decreased to 527,510 tonnes in 2018, climbed to 581,713 tonnes in 2020, decreased to 509,350 tonnes in 2021, and increased to 510,782 tonnes in 2022.
British Columbia was Canada’s largest copper producer with almost 53% of total Canadian production. The province is home to Canada’s largest copper mine, Highland Valley, near Logan Lake. The mine produced 119,000 tonnes of copper in 2022.
Consult a map of producing Canadian mines
Chile was the world leader in mined copper production in 2022 with 5.2 million tonnes of copper, or 24.0% of the global total of mined production. The total world mined copper production was approximately 22 million tonnes in 2022. Canada produced 2.4% of mined copper globally, ranking 12th overall.
In 2021, world refined copper production was 24.9 million tonnes (20.8 million tonnes from primary sources and 4.1 million tonnes from secondary sources). In 2022, production increased 2.8% to 25.6 million tonnes (21.5 million tonnes from primary sources and 4.2 million tonnes from secondary sources).
This bar graph shows the world's annual production of mined copper from 2013 to 2022. Production was 18.2 million tonnes in 2013 and increased gradually to a peak of 22.0 million tonnes by 2022.
This bar graph shows the world refined production of copper from 2013 to 2022 from both primary and secondary sources. Refined copper production was 21.1 million tonnes in 2013 (17.3 million tonnes from primary and 3.8 million tonnes from secondary sources). Production increased steadily across the decade to a combined total of 25.6 million tonnes in 2022 with 21.5 million tonnes from primary and 4.2 million tonnes from secondary sources.
Chile had the largest global copper reserves in 2022 with 190 million tonnes, or 21% of the world total. The global copper reserves are estimated at 886 million tonnes, and Canada is estimated to have 7.6 million tonnes or 1% of the global total.
This circular chart shows the estimated percentages of world reserves of copper by country in 2022. Chile had the largest share with 21%, followed by Australia (11%), Peru (9%), Russia (7%), Mexico (6%), the United States (5%), Poland (3%), China (3%), Indonesia (3%), Kazakhstan (2%), and Zambia (2%). Canada did not rank within the top 10 but had 1% of the known global copper reserves. All other countries combined accounted for 23%.
Canada's total trade (exports and imports) in copper and copper-based products in 2022 was valued at $15.5 billion.
Canada's total copper and copper-based products domestic exports were valued at $9.4 billion in 2022, a 5% decrease from $9.9 billion in 2021. The United States was the main importer of Canadian copper-based products, importing 52% of the total value, followed by China (17%) and Japan (13%).
Canada exported 396,277 tonnes of copper in copper ores and concentrates in 2022, a decrease of 5% from 2021. These exports were valued at $3.6 billion, which is a 15% decrease from 2021 values. China and Japan were the leading destinations of Canadian copper concentrate in 2022.
In 2022, Canada exported 136,254 tonnes of refined copper, which is a 14% decrease from 2021. These exports of refined copper were valued at $1.6 billion in 2022, down 13% from 2021.
Total copper and copper-based products imports were valued at $6.0 billion in 2022, up 15% from 2021. Refined copper alone was valued at $388 million.
In 2022, the United States was the primary source of Canada’s copper and copper-based products imports, accounting for almost half of the total (49%), followed by Chile (17%), Zambia (9%), and China (5%). Smaller amounts were imported from 129 other countries.
The price of copper has fluctuated significantly over the last decade. The average monthly price per tonne was US$7,332 in 2013, with a peak average monthly price of US$10,231 in March 2022. Prices declined after 2013, reaching a decade low of US$4,472 for the monthly average price per tonne in 2016. The price partially recovered in 2018 to US$7,066.
Prices dropped in early 2020 with the onset of the COVID-19 pandemic, but recovered and began climbing quickly in late 2020 to reach US$10,162 in May 2021. The average price in 2022 was relatively high at US$8,822 after several fluctuations. In March 2022, the average monthly price of US$10,231 was a decade high. The price dropped to US$7,545 by July before recovering to US$8,375 by December.
This line graph shows the monthly average nominal price of copper in US dollars per tonne from 2013 to 2022. Starting from $8,047 in January 2013, prices declined steadily to $4,868 per tonne in 2016. Prices recovered to $6,530 per tonne in 2018 before declining to $6,010 per tonne in 2019 and increasing to $6,174 per tonne in 2020. The average price increased rapidly to $10,162 by May 2021. Average monthly 2022 prices ranged between $7,545 and $10,231 before reaching $8,375 by December.
Copper is one of the few materials that does not degrade or lose its chemical and physical properties during the recycling process. Recycling has the potential to extend the use of resources and minimize waste.
The International Copper Study Group estimated that 33% of the world's copper consumption came from recycled copper in 2021.
Canada maintains a strong copper recycling industry. Substantial amounts of the metal are recovered in the Quebec-based smelter and refinery located in Rouyn-Noranda and Montréal, respectively.
Notes and sources(p) preliminary
Totals may be different because of rounding.
All dollars are Canadian unless otherwise indicated.
Uses
Production
International context
Trade
Prices
Recycling