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Chinese Henan Longhui Copper Co. Ltd. has confirmed that its copper and copper alloy tube and copper pipe project is underway and is expected to be completed by June 2011. The operation is expected to produce 90,000t/y of copper and copper alloy tube, including large-calibre copper tube and corrosion-resisting copper alloy tube, and 100,000t/y of copper pipe. The project will be completed at a cost of RMB1B and is expected to generate RMB10B in sales revenue and RMB500M in pre-tax profit. The company, which is located in the Mengzhuang Industrial zone of Hui county in Henan province, produced 380,000t of copper tube in 2010 and generated RMB23.5B in sales revenue.

It has been reported that Chinese Guangxi Nanguo Copper Co. Ltd.'s 150,000t/y copper smelting project was approved by experts on 10th June 2011. The project will be built in Guangxi-ASEAN Youth Industrial Park in Fusui County of Chongzuo City at a cost of RMB3.6B. However, before development is allowed to proceed, approval is required from the Ministry of Environmental Protection of the People's Republic of China. A decision is expected to be announced in the imminent future.

According to data released by the Japan Copper and Brass Association, Japan's rolled copper output amounted to 70,019t in June, a drop of 3.2% m-o-m and 4.2% y-o-y. Despite strong support from the air conditioner sector, demand was hampered by the struggling chip and automotive sectors.

Paranapanema, a Brazilian metal semis producer, began developing its US$47M seamless copper tube plant in the state of Sao Paulo on 27th July. Construction of the plant is expected to be completed by June 2012. The new plant will increase the company's production capacity to 36,000t/y from the current 18,000t/y.

According to data released by the Japanese Electric Wire and Cable Makers' Association, copper wire and cable shipments totalled 55,100t in July 2011, down by 7.5% y-o-y and representing the lowest level on record for July. The figure is down from the revised June figure of 56,723t, attributed to exports halving and domestic demand contracting by 5.4%.

Figures released by the General Administration of Customs indicate that Chinese imports of refined copper rose by 8.8% m-o-m in July to reach this year's monthly peak level of 192kt. However, July's imports still represent a decline of 13.5% y-o-y and a year-to-date contraction of 30%. The month on month rise is attributed to the favourable SHFE/LME arbitrage during May and June. However, it remains to be seen whether the import figure indicates stronger Chinese copper consumer demand. Imports of copper scrap rose to 432kt in July, up by 14.2% y-o-y, which brought the total year-to-date figure up to 2.63Mt, up by 9.1% y-o-y.

The General Administration of Customs reported that imports of copper scrap to China increased by 14% y-o-y and 3% m-o-m to 432,320t in July 2011, the highest level recorded in 2011. The increase has been attributed to importers' expectations of increasing copper prices in the future as well as lower price fluctuations in copper scrap compared to refined copper observed in June and July.

Leoni AG, a leading automotive wiring harness provider, reached an agreement to acquire the outstanding 50% of its joint venture partner, Daekyeung T&G, effective on 1st January 2012. Leoni acquired 50% of Daekyeung in June 2008 after an agreement one year earlier to cooperate on wiring harness development. Daekyeung produces wiring harnesses for the automotive industry in three facilities located in China. The South Korean company is expected to generate sales between €130M - €140M in 2012 and will help Leoni's objective to double sales revenue in South Korea by 2015.

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.

Luvata officially opened its first copper tube plant in Mexico, aiming to fabricate tubes for the HVACR industry. The company sees the current downturn in the commercial tube market as a convenient time to establish its position in the marketplace and be ready when the market picks up. The Monterrey-based plant has started with small but steady deliveries since mid-June. Currently, the plant employs 180 staff with the plan to raise workforce to 250 when the full capacity level of 2,500t per month is reached in H1 2010. Luvata aims to supply several major clients but also expand its clientele to new and smaller Mexican customers. The company intends to differentiate itself by offering just-in-time deliveries, enabling its clients to run reduced inventory levels.

According to data released by the National Bureau of Statistics (NBS), Chinese production of copper semis amounted to 1,054,000t in June 2011, representing a 17.9% y-o-y increase. The total for H1 2011 currently stands at 5,149,000t, up 17.7% y-o-y.