In ROW, our strategy of introducing a broader product range into developing markets helped to offset the impact of lower-than-expected volume across a number of countries. The uneven demand experienced during the second quarter is largely episodic, as the fundamental growth drivers remain solid, and GDP rates for many emerging markets continue to outpace those in the developed world.
Sequentially, our second quarter results reflect the impact of stronger demand in Venezuela, Brazil and Zambia. In Venezuela, the company benefited from higher spending on electrical infrastructure as the country works to reinforce a weak power grid.
In Brazil, our results reflect the aerial transmission shipments and the introduction of specialty products as the country continues to industrialize while at the same time preparing for the World Cup in 2014 and the Olympic Games in 2016.
In Zambia, our results reflect the shipment of aerial transmission products as the government invests in expanding its power grid. In addition, we strengthened our market position and product range in Colombia, Peru, Australia, South Africa and Mexico.
In Mexico, we recently qualified and supplied our first high-voltage cables. Our market penetration into Mexico continues ahead of expectation, and is supported by a state-of-the-art manufacturing facility with high-voltage capabilities ranging up to 225 kilovolts and a comprehensive line of products for electric utilities and contractors.
Overall, our results in ROW continue to demonstrate the non-linear nature of our business in the short-term, as construction, mining and utility products are moved between reporting periods, government appropriations are authorized and infrastructure investment plans are advanced.
Colin Bennett on 02 Feb 10ICSG 1 Feb 09 - Based on existing facilities and announced project developments, annual mine production capacity in the period 2009-2013 is expected to grow at an average rate of around 4.3% per year (%/yr) to reach 23.1 Mt in 2013, an increase of around 3.6 Mt (19%) from that in 2009. Of the total increase, copper in concentrate capacity is expected to increase by 2.7Mt (4.3%/yr) to reach 17.9 Mt and solvent extraction-electrowinning (SX-EW) production by 820,000t (4.4%/yr) to reach 5.2 Mt. Most of the new mine projects and expansions are located in Brazil, Chile, Congo, Mongolia, Peru, the United States and Zambia, which together account for around 2.6 Mt (73%) of the projected mine capacity increase during this period. Annual smelter capacity is projected to grow by an average of 2.6%/yr to reach 20.2 Mt in 2013, an increase of 2 Mt (11%) from that in 2009. Asia will be the leading contributor to growth (1.8 Mt), with expansions and new projects expected mostly in China, but also in India, Indonesia and Iran. Africa is the second leading contributor owing to developments in Zambia. North American smelting capacity will fall by 12% (250kt) due to closures of plants in Canada. The ICSG tabulations indicate that world refinery capacity will reach 26.6 Mt in 2013, an increase of 3.2 Mt (13%) from that in 2009. About 2.3 Mt of the expansion is expected to come from electrolytic refineries and 820,000t from electrowinning capacity. Electrolytic refinery capacity growth is projected to average 3.1%/yr, exceeding the projected growth in smelter capacity, and electrowinning capacity growth (at the refinery level) is expected to average 4.3%/yr. About one half (1.5 Mt) of the world refinery capacity increase during this period is expected to come from electrolytic refineries in China; about 25% (830,000 t) from electrolytic capacity increases in India, Indonesia and Iran; and about 20% (600,000 t) from electrowinning capacity increases in Congo, Peru and Zambia.
