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Luvata's North American rolled copper products business is asking some clients to buy their own cathode. The semis fabricator aims to switch a portion of its customers to tolling deals as an alternative to 30-day payment terms, which is a move to reduce its exposure to rising copper prices. Luvata said that semis production involves a 60-75 days of cash tied up.

It is clear that the economic and financial downturn have begun to take a serious toll on new wind development.

Intraday copper three-month prices on the LME rose by 4.1% to US$ 2,940 per tonne on December 29th compared to the closing price on December 24th, affected by higher oil prices and the weaker US dollar. Increases in oil prices are correlated with increases in copper prices since investors see oil as a barometer for the entire commodity class. Then, the weaker US dollar makes metals cheaper for holders of other currencies. However, analysts remain pessimistic about the red metal due to plunging demand as the ongoing economic slowdown will continue to take its toll on the demand for copper.

The Chinese government is supporting the copper industry by eliminating taxes on copper concentrate imports and finished copper products exports. China is the world's top copper consumer and according to Antaike Chinese copper consumption in 2009 will grow by 2.1%, revised down from its previous forecast of more than 6%. The duty-free trading policies will benefit copper smelters and fabricators, however, weak global demand will continue to take its toll on Chinese exports.

According to preliminary data released by the Japan Copper and Brass Association, production of rolled copper and alloy semis in April fell by 48.6% y-o-y to an estimated 44,420t. Compared with March, the figure represents a 28.7% rise, however, April was the 9th consecutive month that production fell. The Japanese Electric Wire and Cable Makers' Association said last week that copper wire and cable sales in April dropped by 26.3% y-o-y and 18.8% m-o-m to an estimated 52,200t. The deep economic downturn continues to take its toll on copper consumption in the world's second largest economy.

""The planning of the cable laying began back in 2000 after a severe hurricane hit Denmark at the end of December 1999. Today, we've completed the cable laying, and I'm pleased that the consumers in our grid area no longer have to fear major power cuts when Mother Nature takes its toll causing trees to fall down on overhead line poles and power lines. Now that the power cables are buried in the ground, we can avoid this.""

International Wire Group, the US-based fabricator of copper wire, announced on 22nd March that its full-year operating income for 2012 increased by the 6.9% y-o-y to US$57.5M, a record level. The company said that its total pound-for-pound of wires sold, which are primarily copper and copper alloy wires, increased by 5.3% y-o-y in 2012. The company said "our strong full year operating results were driven by increased customer demand in our bare wire business, primarily from the automotive/specialty vehicles market." International Wire Group also announced fourth quarter results, with operating income increasing by 9.6% y-o-y, whilst its pound-for-pound of wires sold decreased by 3.6% compared to the fourth quarter of 2011. This was because a higher proportion of the group's business came from tolling contracts in the fourth quarter - whereby end-users provide the refined copper to be converted into wire.

Some Chinese copper producers may be eyeing exports following the removal of a 3% tax on toll-rolled exports in July. In an unprecedented move, some Chinese producers are said to be considering signing export contracts in a bid to stabilise revenues amidst a highly competitive domestic environment. Earlier trade data for September showed a sharp increase in China's export of refined copper, 214,789 tonnes in the first nine months of the year, up 40% from the equivalent figure in 2011.

H1 reports from China's metal companies have revealed difficult operating conditions as rising energy prices, investment in environmental protection and an increase in resource tax have squeezed margins. Shares in the metal index fell 58.6% in the first half of the year, underperforming the SSE Composite Index which saw a 48% decrease. Copper companies fared better than most as the copper price remained at historically high levels and prices of sulphuric acid - a byproduct of the copper treatment process - soared. Jiangxi Copper, China's biggest producer, reported strong results with a 55% surge in revenues year-on-year. Net profit grew at the slower rate of 32.8%, reducing the company's profit margin to 10.4%, from 12.1% in the first half of 2007. The company has a slightly bearish outlook for the rest of this year, as the continued slowdown in the global economy takes its toll on copper demand and the appreciation of the dollar puts downward pressure on copper prices. However, it suspects copper supply will remain tight, which should support prices on the downside. Yunnan Copper Company struggled in the first half as revenue fell 18.9% and net profit plunged 29.5% y-o-y. The companies profit margin was cut to 3.8%, from 4.4% in the first half of 2007. A 45-day machine overhaul was blamed for the poor sales figures as output remained flat, whilst high energy prices pushed up production costs. Tongling Nonferrous Metals saw similar problems to Yunnan as rising raw material prices and fluctuations in the copper price cut the gross margin in the firm's copper unit to just 0.59%. Company-wide results were improved greatly by the strong performance of sulphuric acid, where gross margin increased to 71.6%, bringing Tongling's profit margin to 2.9%, up from 2.0% in H1 2007.