Global mine production posted another annual increase and in so doing chalked-up another fresh all-time high to reach 3,222 tonnes. The rise, however, was modest and in our view these record breaking habits are close to an end. The growth rate has roughly halved every year for the last three years, partly as output from new mines has slowed and we expect production to contract in 2017. Highlights last year included an 8% rise in the United States elevating the country to a nine-year high and a 4% increase in Australia taking them to a 16-year high. The biggest losses originated in Mexico, Peru and Mongolia.

Scrap supply rose 8% in 2016 to 1,268 tonnes, aided by the rising gold price and a 50% surge in Indian volumes. Indian flows were at their highest for more than a decade as higher prices encouraged destocking from consumers, as did a lack of available credit from the domestic banking system.