The global copper market moved into deficit last year, with the International Copper Study Group estimating a seasonally adjusted refined deficit of some 60,000 tonnes in September 2010, the most recent figure available. All signs indicate that deficit conditions will continue through 2011.

Copper ore producers have sought to expand production to meet the improved physical market, which in many cases has made the copper price a good deal higher than the marginal cost of production, which in turn has attracted capital expansion dollars to brownfield and greenfield projects.