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It was reported that a new criterion for the legislative standard which affects copper wirerod fabricators has been approved by a committee of experts and has been submitted to the Ministry of Industry and Information Technology of China for consideration. Industry sources have stated that there is an emphasis on driving domestic innovation to lift the quality and utilisation rates of continuous casting and rolling mill technology, which is currently lagging behind higher performance, expensive foreign equipment. Approximately one third of copper scrap is used in the direct manufacture of copper and copper alloy wirerod and semis. However, it is thought that none of the 80 or so secondary copper rod manufacturers will meet the criteria outlined in the proposal.

According to reports, Aurubis, Europe's leading copper semis fabricator, is successfully maintaining high levels of output and is looking for takeover opportunities despite the current economic turmoil in the eurozone. The company sees current global demand for copper as strong and does not expect it to weaken in the coming months. It has been speculated that Aurubis may acquire assets in Asia and/or South America in the near term. Nevertheless, the company announced last week that it plans to close some its flat rolled copper operations in Finspång, Sweden due to overcapacity.

The Japan Copper and Brass Association released an estimate of the total domestic fabrication of copper and copper alloy products in November, which showed that production fell by 10.4% y-o-y to 65,940t. Copper strip production amounted to 18,240t, down by 18% in November and has experienced year-on-year declines for twelve consecutive months. The segment was negatively impacted by weak demand from the semiconductor and electronic industries since autumn 2011. Conversely, brass strip output rose by 3.3% y-o-y to reach 9,895t in November supported by a rebounding automotive sector. Copper tube output in November amounted to 9,895t, down by 20% y-o-y, due to base year effects caused by a rise in production after the hot summer in 2010 (the November level is higher than the same month of 2009). Brass bar output contracted by 5.3% y-o-y in November to reach 14,993t attributed to weak end-use demand from the Japanese construction and electrical sectors, especially in the latter half of this year.

Quanwei (Tongling) Copper Technology Co. Ltd., a subsidiary of the copper wirerod and wires producer, Hong Kong Zhangwei International Group Company, recently begun installation of a second phase of new production lines at its facility in Tongling Economic and Technological Development Zone. The company completed the first stage of copper semis processing units in 2009 and upon completion of the new expansion, the factory will have capacity to produce 120,000t/y of copper wire, 30,000t/y of fine copper wire, 600,000km/y of special cables and 50,000t/y of polymer material. Quanwei (Tongling) expects to achieve revenues of RMB12.0B once the operation is producing at full capacity.

The US Department of Commerce concluded that a revocation of the antidumping duty order on brass sheet and strip from Germany would likely lead to a recurrence or continuation of dumping. This follows a 5-year review that was initiated on 1st March 2011. An essential aspect of the results was the calculation of the weighted-average percentage margins for German exporters, which it measured to be 3.81% for Wieland-Werke AG and 7.30% for all others.

La Farga Tub France, a new subsidiary of La Farga Group, the Spanish copper semis fabricator, commissioned a new distribution facility to supply France with the Group's 'La Farga Tub' copper products. The copper piping will be manufactured at the Les Masies de Voltregà plant and will be 100% recyclable and bacteria-free. The products' intended application areas include: Sanitation, refrigeration, climatization, medical and industrial use. La Farga estimates that the annual consumption of copper piping in France is 30,000t.

Following announcements from Aurubis and Revere about planned rises in their US fabrication charges, Olin Brass Corp. and Hussey Copper Corp. have also unveiled their plans to increase fabrication conversion prices. Olin Brass Corp. intends to increase charges by 5¢/lb on all alloy orders shipped from 1st March. Hussey Copper Corp. will increase charges by up to 10% on its copper products, including sheet, strip, bar and plate on shipments from 1st March. Olin Brass attributed the rise in its prices to escalating inflationary costs related to supplies, maintenance, energy and healthcare. Hussey stated that the charge increases were essential for ensuring continued investment in its equipment, products and people.

The German copper cathode and semis fabricator, Aurubis, has reported its concerns over the Federal Government's decision to phase out nuclear power. Aurubis said that the new legislative package, which involves the decommissioning of seven base load power plants, does not ensure that electricity will remain secure and affordable for the company. As such, it believes that power supply now represents a significant downside risk to its operations. In the event of a momentary power failure, the company would suffer a half-day cathode production loss. A sustained power shortage or blackout could cause substantial damage to plant equipment as liquid melts solidify. Aurubis said that steps were required to be taken to expand the power grid and increase power plant capacities. The company currently uses 1Bn KWh/y, approximately the same amount as 600,000 inhabitants.

TEPCO, a Japanese power supplier announced that it will increase its electricity prices for corporate clients by an average of 17% to cover higher energy costs for the use of thermal power plants while the firm idles many of its nuclear power facilities. The Japan Copper and Brass Association diapproves of the move, which it says would add ¥1.2 - 1.3B/y in production costs at the affected brass mills. The 23 copper product fabrication sites within the TEPCO supply area account for 43% of total copper semis output in Japan.

Sindicel, an association for the Brazilian non-ferrous metals consumption industry, released figures indicating that Brazil's semi-fabricated copper product output was down by 2.6% y-o-y, reaching 396,900t (copper content) in 2011. Wirerod production accounted for 237,000t in 2011, up by 1.2% y-o-y, whereas brass mill output by copper content was 133,500t in 2011, down by 10.2% y-o-y. Capacity increases in both the wirerod and brass mill product sectors resulted in utilisation rates of 47% and 66%, respectively in 2011. These were down on the production capacity utilisation rates of the respective sectors in Brazil in 2010, which were 52% and 77%.

Aurubis AG, the Germany-headquartered refined copper cathode and copper products fabricator, reported a weak performance in sales of copper products in the first quarter of this year. In Q1, the outputs of wirerod; pre-rolled strip; continuous cast shapes; rolled products and speciality wire reached 179,000t, 41,000t, 47,000t and 60,000t, down by 17% y-o-y, down by 15% y-o-y, up by 2% y-o-y and up by 329% y-o-y, respectively. Generally, the seasonal upswing in Q2 was weaker than expected, however, there was a mixture of performances in the sectors within each market, as some wirerod market sectors ordered strongly but European semi-fabricators and customers of strip and speciality wire continued to order shrinking quantities at late notice.

Aurubis reported a growth outlook for its copper products business unit. The company said that the performance of copper wirerod depends upon the progress of power grid expansion projects in Europe. The automotive sector is expected to continue to support growing wirerod sales for the next few months, however the enamelled wire industry is expected to remain weak attributed to poor demand in southern Europe. North American demand is anticipated to support growth in shipments of copper shapes as well as the company's market for flat copper products. In this regard, the US electronics and electrical industry, engine cooling and distribution segments are expected to continue improving. Stagnant European and Asian demand for flat copper products will partially undermine growth in North America. The company added that it does not anticipate the Asian copper products market to recover until the end of Summer 2012, at which time, demand in the US is expected to be good and demand from European-based operations will be recovering.

Undisclosed Chinese copper fabricators reported that they plan to increase copper purchases after the summer. A representative from a copper commercial tube fabricator based in Henan province reported that the company is planning to buy more than 10,000 tonnes of copper cathode in September compared to a few thousand in July and August. In addition to term supplies booked late in 2009 for deliveries in 2010, the company will need to buy in the spot market more than 10,000 tonnes of refined copper per month in Q4 2010 because of additional customer orders. The tube maker has seen its best year yet, supported by strong demand from air-conditioner manufacturers. As a result, its copper commercial tube output is expected to rise by 15% y-o-y in 2010. A source from a copper rod producer located in Guangdong province said that some overseas clients were placing additional orders for September and October. The company uses 14,000-15,000 tonnes of refined copper per month and is likely to increase spot imports to meet extra demand. Another fabricator, which uses 70,000 tonnes of refined copper per annum to produce copper rod, plate and strip, mentioned that the Anhui-based company has a full order book for the rest of the year. Thin copper strip, consumed by the electronics industry, registered the strongest growth. Backed by strong demand, the company managed to raise its product prices to cover increased copper costs. In addition, Chinese power cable output has stayed firm and mostly unaffected by Beijing's policy controls on the property sector. Power cable production rose by 23.2% y-o-y to 14.1 million kilometres in the first seven months of the year. It was also reported that copper semis production increased by 14.5% y-o-y to 6.1 million tonnes in the same period.

Higher sulphuric acid prices, up almost 200% on a year ago, to 1500 yuan per tonne, provided a big boost to China's largest integrated copper producer. Revenues contributed by sulphuric acid, a by-product of copper smelting, amounted to 1.66billion yuan in H1, a 521% increase year-on-year. Jiangxi Copper posted H1 net profit of 2.77billion yuan, an increase of 32% on the same period in 2007. The company expects demand for its products to slow in the second half of the year with global economic growth struggling to gain momentum. However, Jiangxi remain confident that copper prices will stay high as a result of, "the shortage of copper concentrates supply around the world and the downgrade of copper concentrates." Factors expected to put pressure on Jiangxi's profit margin over the second half of the year include falling smelter processing fees, as a result of global over-capacity and tight supply of concentrates, and a cut in output of semi-finished products due to China's ongoing power shortages.

The Florence, Italy, based KME Group S.p.A. announced revenues of €1,623 million for the first six months of 2008, down 12.2% on the same period in 2007. EBITDA was €64.4 million in the same period, down 15.8%. "The Group's profitability is lower than in the first six months of 2007, when market conditions were more favourable, but in line with the level achieved in the second half of 2007," said the company. Going forward, KME, a global leader in the production of semi-finished copper products, remains bearish about the demand outlook in Europe. The company also identified raw material prices, "which remain high and are characterised by high volatility," as a potential source of risk.

On 6th August, Xstrata reported H1 profits were down 6.7% versus the same period in 2007. Revenues were 13% higher at $16.092 billion, after record first-half production in coking and semi-soft coal, ferrochrome, refined nickel, platinum, zinc concentrate and lead concentrate. The company expects second-half production to be even stronger, reflected in their decision to raise the interim dividend by 13% to 18c. per share. Xstrata remains bullish over demand prospects in China, with ongoing infrastructure development and urbanisation underpinning growth, adding "the Group is well positioned to enjoy margin expansion and improved profitability from the second half of 2008 and into 2009".

On August 19th, Chinalco began work on its 300 ktpa copper semis facility in Kunming, Yunnan Province. The company's three existing processing sites, Chinalco Luoyang Copper, Chinalco Shanghai Copper and Chinalco Daye Copper Sheet & Strip, account for around 28% of China's total copper sheet and strip capacity, with a combined total of 130 ktpa, and 220 ktpa of expansions under construction. The new facility, with total investment of RMB2 billion, will comprise a 100 ktpa sheet and strip facility and a 200 ktpa wire and rod facility.

The latest figures released on the Chinese Customs' website show imports of unwrought copper and semi-finished copper products in August fell 4% month-on-month, to 178,047 tonnes. The fall comes despite many traders predicting an increase as prices on the international markets fell relative to the SHME price. One analyst commented on the news that, "the Olympics probably depressed imports even though the narrowing of the spread should have supported them. Chinese stocks are low and prices in Shanghai are pretty firm so we could see a bounce in September."

Many Japanese scrap dealers have reduced their shipments to copper alloy fabricators by more than 20% in October due to falling demand. Copper fabricators have decreased their scrap purchasing volumes because of weaker semis output. A number of brass bar makers decreased their buying volume of brass turning scrap by more than 30% in October. From the supply side, copper scrap generation has been tight. Scrap availability has been falling since July and that has triggered competition between scrap dealers to maintain adequate levels of inventory, which resulted in a spike in the market price in September.

The Nizhni Novgorod Copper Company will invest around RUB800M (US$32M) in a copper wirerod plant in Dzerzhinsk, in the Nizhni Novgorod region of Russia. The plant is expected to have an annual capacity of 25,000t/y, and will use 26,000t/y of copper scrap. Commissioning is expected in late 2010.

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.