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Copper hit an 18-month low on Tuesday before trimming losses as recession fears grew after the U.S. Congress voted down a rescue plan for troubled banks.

"Cash is now king and grassroots exploration is ill-advised until market sentiment improves," Haywood Securities warned junior mining sector investors. Nevertheless, Haywood views current valuations "as a fishing opportunity."

According to CRU's forecasts presented at the 9th World Copper Conference in Santiago, global copper consumption in 2009 is expected to fall by 2 to 3 million tonnes. This represents a 15-20% y-o-y plunge compared with 2008. The severe contraction is attributed to the global economic crisis and the freefall that many industries, such as the automotive sector, have experienced. In the first two months of 2009 total consumption of copper and copper alloy semis declined by 32% y-o-y, while that of copper wire and wirerod fell by 25% y-o-y. In the same period, insulated wire and cable decreased by 30%.

Codelco, the Chilean copper producer, is optimistic about medium to long term copper demand prospects, primarily due to Chinese growth. The company also sources its optimism from predictions that the Japanese earthquake will have only a marginal and short term impact on the copper market, before growth resumes. In addition, it was reported that world demand is strong and has a good outlook despite expectations that the market in the developed world will only return to pre-crisis levels.

It was reported that Gree Electric Appliances, a state owned manufacturer of air-conditioners, recorded a 65%y-o-y increase in exports in Q3. Indonesia, Brazil, India and Africa were quoted as regions with great potential for exports. The company anticipates that the air-conditioning industry will witness a 20-30% y-o-y increase in exports in 2011. Nevertheless, Gree noted that the eurozone crisis is impacting negatively on business.

Aurubis AG, the Germany based refined copper and copper products manufacturer, said that actual business operations do not reflect the pronounced negative mood indicated by the International Monetary Fund's (IMF)growth forecast reduction for developed countries. Citing the Eurozone's 5.3% y-o-y rise in industrial production in August, as well as strong recent performances in Germany's electrical and automotive industry, Aurubis surmises that there is no sign of a slump in orders as implied by the negative market sentiment.

Great catch. Copper is not only the best conductor material, it might also provide superconductors :-).