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German integrated copper producer Aurubis reported a 47% y-o-y increase in net income to €258M in H1 FY2010-2011 (1st Oct 2010 - 31st Mar 2011), up from €161M. H1 revenue increased by 42% y-o-y from €4.5B to €6.5B. This outcome was mainly the result of higher copper prices and continued demand for copper caused by the global economic recovery. However, demand from China steadied in Q2 due to a tighter credit environment, as did demand from Europe, due to increasing economic instability. The wire and cable industry performed well, experiencing strong demand from the automotive and domestic appliance sectors. Likewise, copper strip was supported by demand from the coinage as well as special material sectors. On the other hand, copper tube and flat rolled products struggled to recover as a result of strong competition from lower cost substitutes.

PKC Group Oyj, the Finnish wiring, cable and electronic manufacturer, signed an agreement to buy AEES, the North American wire harness manufacturer, for €109M in cash and €1.25M in newly-issued PKC shares. PKC principally produces wiring harnesses for the automotive industries in Europe and South America. The company cited the rebounding market environment and AEES' strong North American regional market share as a leading supplier to the heavy and medium truck production sectors as reasons for the takeover.

Fushi Copperweld Inc., a leading manufacturer of copper-clad wire, was granted approval by the Commercial Court of Liege in Belgium to lease a 45,000 square-meter copper tube manufacturing and distribution facility, which would serve as an operational hub for the company in Europe. The plant will produce 5,000-6,000t/y of copper tube and plans are being considered to develop a copper-clad wire production line. During the lease period, Fushi Copperweld will have the option purchase all of the assets for EUR5.8M (US$7.8M).

The Japan Copper and Brass Association reported that production of rolled copper products fell by 5.3% y-o-y to 70,670t in August, the biggest fall this year. The decline is linked to weak demand for chips, connectors and automobiles.

Furukawa Electric Co. Ltd., the Japan-based wire and cable manufacturer, has reached a plea agreement with the U.S. Department of Justice under which it will plead guilty to U.S. antitrust violations and pay a fine of US$200M. Separate felony charges levelled against three Furukawa executive employees involved in the collusion have resulted in a combined total of 45 months in U.S. jail terms. The case relates to the collaborative investigations by Japan, the U.S. and the E.U. following the February 2010 raids by Japanese authorities on Furukawa and its competitors: Fujikura Ltd., Sumitomo Electric Industries and Yazaki Corporation. The companies are suspected of being involved in price-fixing and bid-rigging within the automotive components industry. All of the manufacturers, with the notable exception of Furukawa who avoided penalties through reporting the cartel, were also fined a total of ¥12B (US$150M) in June by the Japan Fair Trade Commission for anti-competitive offences in the domestic automotive wire harness market. However, the total cost in penalties in the U.S. could escalate as the remaining companies undergo court judgements after they decide to either enter plea agreements or wait for a court hearing.

Nexans announced that Madeco, its main shareholder, will increase its holding position from 9% to 20%. The French cable maker commented that the agreement reflects the shared views of the two companies. Nexans wishes to have the support of a long-term reliable partner for its growth. In addition, Madeco intends to invest in a promising sector through a reliable downstream company.

According to the China Nonferrous Industry Association (CNIA), China's copper fabricating capacity will increase from 12Mt/y today to 16Mt/y in 2015. In 2010, China's fabricating capacity was 12Mt and output was 10Mt. By 2015, CNIA forecasts an additional copper fabricating capacity of 1.5Mt of copper wire, 1.2Mt of copper plate and 450,000t of copper tube.

It was reported that China's Amer International expects to complete construction of its new 250,000t/y copper rod production line, located in its Chaohu City facility in Anhui Province, by year-end. The expansion project will bring Amer's production capacity to 500,000t/y and its total copper rod production is anticipated to reach 200,000t in 2011. A spokesperson for the company said that it will manufacture rod for both domestic and foreign export markets. In addition, Amer also intends to source copper cathode for rod-processing from within China and also overseas. Total investment for the project amounted to RMB2.5B.

Southwire, the US-based aluminium and copper cablemaker, has said that while the use of copper in most electrical applications is unlikely to change, some manufacturers are likely to move toward the use of aluminium wire. The auto industry is increasingly using aluminium wire for traditional copper applications. This is occurring most predominantly outside of the US, however domestic autos companies have also been using aluminium wire for battery cable and aluminium wire harnesses for lights. Southwire stated that for most electrical applications copper usage will remain dominant because of its overall reliability.

Guangzhou Jiangtong Copper products, a subsidiary of Jiangxi Copper, announced that it began trial production at its new 400,000t/y copper wirerod plant this week. The company expects to supply nearby consumers in southern China as well as those in foreign markets in Southeast Asia. Capital investment expenditure totalled RMB2.0B.

The EU announced a 'Connecting Europe Facility' initiative on 19th October, which has substantial potential to boost European wirerod demand. As part of the €50B (US$69.5B) investment initiative, the EU plans to invest €9.1B (US$12.7B) in energy infrastructure, including renewable energy generators, smart meters and smart grids, and €9.2B (US$12.8B) in telecommunications and ICT.

"The new facility will serve both the internal market sustaining the infrastructural energy development project in Romania, and the export market further qualifying Romania as an excellence hub to serve the most advanced international markets. Completion of the project and beginning of production is scheduled for July 2015."