Copper market seen more in balance by H2 2015 - MMG

MELBOURNE, Sept 23 (Reuters) - A surplus in the global copper market may prove smaller and shorter-lived than expected, as delays to new mine supply coincide with a recovery in demand, Andrew Michelmore, CEO of MMG Ltd said on Tuesday.

"What was going to be a massive oversupply is probably going to be a loosening not a tightening, but it will be consumed fairly quickly. My gut feel is second half of next year I'm expecting it to get more in balance," Michelmore said on the sidelines of a resources conference.

The global copper market is expected to be in a surplus of around 285,000 tonnes, next year, according to analysts polled by Reuters. (MKTBAL-ACL)

Public investment in housing and infrastructure for China's growing middle class will help drive copper demand, as will a nascent economic revival in the United States, Michalmore said.

"The U.S. economy is picking up ... You're starting to see it with reinvestment in housing, new housing starts. They're gradually getting rid of that overhang of mortgages," he said.

"(As a result) copper is the first one that picks up. For me, the demand is quite good and will grow," he added.

MMG and its Chinese partners have paid $7 billion to buy one of the world's largest copper projects, the Las Bambas copper mine in Peru, from miner Glencore Plc (Xetra: A1JAGV - news) .

The mine, due to start producing in 2015, is expected to produce 2 million tonnes of copper in concentrate in its first five years of operation. (Reporting by Melanie Burton; Editing by Richard Pullin) ))