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Chinese imports of copper and copper semis products tumbled in October to reach 263,109 tonnes, down 34% from September (when imports unexpectedly surged to 399,052 tonnes), according to data released by the Chinese customs office on 11 November. This is the lowest monthly total since January's 232,700 tonnes. The market had expected a decline, due to prices, but not such a big one. China's scrap copper imports were 260,000 tons in October, down 36% from 411,696 tonnes in September.

The China Nonferrous Metals Association (CNIA) reports that in October the operating rate of Chinese copper wire and rod enterprises was 78.3%, up 2.8% y/y, and that of copper tube enterprises (previously down 59.2% y/y in September ) was 73.3%, up 22.8% y/y and 14.1% m/m. Copper semis output Jan-Sep was 6.27mt, up 18% y/y. The fourth quarter is the traditional peak production season, driven by the growth of end use industries such as home appliances and automobiles etc, and CNIA expects to see continued growth in consumption.

The Japan Copper and Brass Association said that copper semis output in Japan fell by 17% y-o-y to 66,145t in September. But from a m-o-m perspective, September rose by 5%, the sixth consecutive monthly improvement. It was reported that even though it was the 14th y-o-y decline, the decrease narrowed supported by the pick up in demand from the semiconductor, automobile and electronics industries. It is expected that demand in FY2009 will amount to 713,930t; that will be the lowest level since FY1975 and will represent an 11% contraction compared with FY2008.

According to the Beijing-based customs office data released on 14 October, Chinese imports of refined copper and copper semis increased to 399,052t in September, a 23% m-o-m rise. The figure exceeded expectations (the market had widely expected another m-o-m decline), and so provides some optimism about demand recovery, especially in a period when price differences do not favour imports. China's scrap copper imports were 410,000t in September (up from 392,121t last month).

8 copper & aluminium deep processing projects were launched in Shijiao County, Foshan City in Guangdong Province, at the end of September, providing 2,000 jobs with a total investment of 1.3bn yuan (US$190m). The area has been developing its nonferrous metals scrap dismantling sector for over 20 years. The Qingyuan Nonferrous Metal Processing Base, which is located in Shijiao County, has become an important manufacturing base attracting investors from across China.

China's Jiangxi Province, which is rapidly developing its copper industry, produced 511.9kt of copper semis in H1 2009, up 14.34% y-o-y, according to government sources. New projects commissioned in the province in recent months include: a 100ktpy secondary copper project (stage 2) for Fuwang Copper of Zhejiang Zhongwang Co. Ltd., a 50ktpy copper semis project for Jiangxi Junmao Co. Ltd., a 100ktpy secondary copper project for Jiangxi Jinhui Copper and a 10ktpy copper semis, plate, strip and hardware project, a 54ktpy copper semis project for Jiangxi Sanchuan Copper Co. Ltd., and a 4ktpy Cu-Ni-Zn project for Jiangxi Yihuang Yongsheng Copper Co. Ltd.

China's copper semis production in June was 914,200t, up from 826,200t in May, and up 23.9% from a year ago, according to the National Bureau of Statistics of China. (CNIA gave the May figure as 800,025t). The industry may not be seeing the slow summer which had been widely expected. Power cable production (one of the largest end use products) reached 2.1 million km in June, which was 3.7% up y/y.

Jiangxi Sanchuan Copper Co. Ltd. started constructing its new 54kt copper semis project in Yingtan City on 16 June. The company, which manufactures products including cable, copper rod & sheet, is investing 260m yuan in the project. It expects to start operations in November 2010, and realize annual sales of 1.2bn yuan.

Jinchuan Nonferrous Metals Co. Ltd (JNMC) recently began trial runs of its new copper semis line, which will be capable of increasing their output of copper rod for electrical purposes to 100kt/y, up from 25kt/y. This is a key project for JNMC (begun in December 2007), aimed at extending its copper products chain and optimizing the product-mix, with more high technology value-added products. Additional annual sales income of 4.0bn yuan is expected.

Aurubis said that demand for its products bottomed in April and showed some recovery signs in May. As a result of weakening demand in Q1, the company cut copper wirerod output by 25% to 168,000t. The company planned to cut working hours in its copper wirerod plant in Hamburg but the measure was not implemented as demand strengthened. Luvata reported that its copper semis sales contracted on average by 25% y-o-y in Q1. The worst hit end-use sectors were the automotive and construction industries, which plunged by 40% y-o-y in Q1. In response to the economic crisis, the company has cut production in the US, Europe and China. Both Aurubis and Luvata said that as their customers have kept stocks to a minimum the market now experiences stabilisation. Luvata highlighted that its recent demand increase may be only the result of restocking. Also, extended summer holidays will impact this rebound.

According to preliminary data released by the Japan Copper and Brass Association, production of rolled copper and alloy semis in April fell by 48.6% y-o-y to an estimated 44,420t. Compared with March, the figure represents a 28.7% rise, however, April was the 9th consecutive month that production fell. The Japanese Electric Wire and Cable Makers' Association said last week that copper wire and cable sales in April dropped by 26.3% y-o-y and 18.8% m-o-m to an estimated 52,200t. The deep economic downturn continues to take its toll on copper consumption in the world's second largest economy.

Tongling Nonferrous Metals Group Co., Ltd. has announced that it will invest more than 220 million yuan in Tongling Nonferrous Stock Copper Semis Co., Ltd. As a result, the registered capital of its 100% owned subsidiary will rise from 60 million yuan to 280 million yuan. The subsidiary will be renamed to Tongling Nonferrous Tongguan Electronics Co., Ltd. It will engage in "the processing of copper semis such as enamelled wires, cables, phosphorus copper balls and other copper wire".

The Chinese Henan Province has announced that it plans to invest in key regional projects. According to the plans, nine projects are related to the non-ferrous metals industry, two of which are copper semis plants. The first is a high precision electronic copper sheet and coil project of Chalco Luoyang Copper Co., Ltd. with annual capacity of 100,000 t. The second is a copper sheet and coil project of Henan Sanfeng Copper Co., Ltd. with annual capacity of 50,000 t.

Chinalco Luoyang Copper Co., Ltd. is working on a 100ktpy high-precision copper plate, sheet and strip (PSS) project. According to a survey carried out by Antaike, the project is expected to start operations at the end of 2009. Upon completion of the project, the company will have 200ktpy copper PSS output capacity. In 2008 Luoyang Copper produced 70,000 tonnes of copper PSS and 20,000 tonnes of copper wirerod and copper tube.

South Korea has experienced a sharp decrease in its entire copper semis range production in November 2008 according to the Korean Nonferrous Metal Association. Copper wirerod totalled 46,007 tonnes, falling by 18% y-o-y. Copper plate and strip plunged by almost 42% y-o-y to 10,744 tonnes. Copper tube also declined by approximately 26% to 9,448 tonnes, while copper and copper alloy bar production fell to 16,191 tonnes, a decline of approximately 8%. Overall, copper semis production in November 2008 dropped by 21.4% y-o-y. For the first eleven months of 2008, copper semis output amounted to 1,097,154 tonnes compared to 1,193,092 tonnes from the same period in 2007, declining by 8%. The economy has been hit by shrinking exports and weakening domestic demand. In response to the downturn, the government announced that it will invest 50 trillion won within the next four years in infrastructure and environment projects.