The China Non-ferrous Metals Fabrication Industrial Association (CNFA) announced that it is considering legislative changes that could see more stringent standards for introducing new copper processing facilities in China. The association warned that there could be a copper products surplus in 2015 following the start-up of new projects, adding that processing capacity should not exceed production by more than 15%. CNFA figures indicate that China produced 10.28Mt of copper products in 2011, up by 18% y-o-y. Processing capacity and utilisation rates were estimated at 12Mt/y and 90% at the end of 2011.

Furukawa Electric announced on 8th May that it has developed a new type of aluminium alloy wire harness that is strong enough to be used in car doors, engine compartments and other locations traditionally reserved for copper wiring harness. The newly announced product features are expected to enter commercial production in 2014.

The Italian association Assomet expects production of copper and copper alloy semis to fall by 2.4% in 2012, to 1.0Mt, mainly attributed to poor end-use demand, worsened by increases to housing and value-added taxes. Orders are erratic and the Italian copper semis production sector is currently operating at 50% capacity utilisation, whereas the copper alloy semis sector is slightly higher at 60%.

Assomet, the Italian non-ferrous metals association, released figures indicating that the output of copper and copper alloy semi fabricated products fell by 4.8% y-o-y to 1.1Mt in 2011. Copper semi-fabricated products output fell by 6.7% to 556,100t in 2011, while copper alloy semis production declined by 2.8% to 501,500t. The association noted that there was a sharp deterioration in demand in Q4 2011 as concerns grew about the country's debt.

Japan's domestic shipments of residential air conditioners rose 12 percent in March from a year earlier to 678,736 units, the Japan Refrigeration and Air Conditioning Industry Association said.

Hennan Sanfeng Copper, a subsidiary of Anyang YuBei Gold and Lead Co., Ltd, announced that it now has the capability to manufacture its desired portfolio of copper and copper alloy strip products. This comes after news in December 2011 that construction of its 50,000t/y copper and copper alloy strip fabrication facility had been completed. The company expects to double capacity with the completion of its second phase facility expansion, which is currently undergoing construction.

Nexans reported organic revenue growth of 0.6% to €1.75 billion ($2.3 billion) in all activities in the first quarter, down from 13% growth in the previous year. The group reported strong growth for the first quarter 2012 for copper cables in South America and fibre cables and components in Scandinavia and France. The company did not supply a specific figure for the telecom business, which is now grouped in the transmission, distribution and operators division. Nexans said its operating margin at 30th June should be around 3.5% as a result of competition in underground cables and delays in invoicing high voltage products. At the end of March 2012, net debt came to €566 million ($748.1 million) compared with €222 million ($293.4 million) at the end of December 2011. This increase can mainly be attributed to the acquisition of AmerCable, finalised on 29th February for an enterprise value of €211 million ($278.9 million).

Wuxi Lineo Science and Technology Group began construction of a 60,000t/y copper wirerod mill in Wuxi City, Jiangsu province. Start-up is expected to take place by October 2012. The company will also invest in a second phase expansion project that will involve the addition of another 60,000t/y wirerod production line by November 2014. The plant will be primarily fed with refined copper cathode sourced from Tongling Nonferrous Metals in Anhui province and is designed to serve wirerod to domestic wire and cable producers unless market prices become sufficiently attractive to allow for export. Wuxi Lineo Group is a private enterprise with downstream manufacturing subsidiaries producing cable, hardware, mechanical and electrical products.

EcoSea, the Chile based manufacturer of copper mesh cages for use in aquaculture systems, announced that it intends to enter the Northern European market beginning with Norway and Scotland. The company expects to install its first 40 cages in Norway by 2013, generating revenues of US$15M. EcoSea is also dealing with Marine Harvest, a global leader in fish farming, who have agreed to install a fish farming complex using copper mesh cages in Scotland. To date, EcoSea has used 1000t of copper, however, its accumulated total use of copeer is expected to rise to 5,000t in the coming years.

The China Nonferrous Metals Industry Association reported that output of copper products amounted to 1,585,022t in Jan-Feb 2012, indicating a rise of 33% y-o-y. This production value tallies with the earlier reported semis output figure of 1,580,000t from the National Bureau of Statistics for the same period.

The Japan Copper and Brass Association reported that domestic production of brass mill semis fell by 8.5% y-o-y to reach 64,076t in February. The association also anticipates production of around 67,000t in March, which would represent an 8.3% y-o-y decline for the month and a 6.7% y-o-y contraction in output for FY2011/12. In addition, production in 2012/13 is forecast to rise by 2.4% y-o-y to reach 825,300t of brass mill products.

Wieland-Werke AG, the German fabricator of brass mill products, reported sales of 475,000t, down by 0.4% y-o-y in financial year 2010/2011. Turnover increased by 24% y-o-y to reach €3,287M and profits also rose to €45M in 2010/2011 after a loss of €6M in the previous year. The rise in turnover was mainly attributed to rising metals prices, while the company said that the increase in profits was caused by a product mix composed of a larger amount of value-added products. Wieland noted strong demand in the first six months of the period, which was offset by the Euro debt-crisis as a driver of significantly weaker demand in Europe during the latter half of the fiscal year. In addition, the company saw a fall in demand in Asia from Spring 2011 and continued very low demand in North America. End-use consumer demand was weak and impacted the electronics and electrical engineering sectors as well as vehicle production. Mechanical engineering was considered to be a bright spot in fiscal year 2010/2011.

Wieland-Werke AG, the German fabricator of brass mill products, stated that demand in 2012 began weakly. After January, orders rose only slightly, but demand from important markets in Asia and Europe declined, principally attributed to cautious buying as fears remained over the impact of the course of the euro debt crisis in 2012. In addition, the company is experiencing reduced demand from the electronics industry in Asia following the closure of several plants affected by the tsunami in Japan and flooding in Thailand. Wieland has also not seen any growth support from North America and is uncertain about the global outlook for demand in 2012 due to the unpredictability of the euro debt crisis.

The Rio de Janeiro State Government has introduced a tax incentive plan to initiate and promote the growth of the downstream copper industry. A reduction in the VAT on copper products from 19% to 2% (only eligible for companies investing over R$40M) has already led to a decision by Ibrame, the Brazilian manufacturer of copper cathode, wirerod, bar and other products, to construct a copper rod mill in Itatiaia. Upon commissioning in early 2013 the facility is initially expected to produce 70,000t/y of wirerod, processed mainly from direct-use scrap, with capacity rising to 100,000t/y in subsequent years.

The National Bureau of Statistics released figures this week announcing a 51.8% y-o-y rise in China's copper products output to 914,400t in February. The year-to-date total of 1,580,000t indicates that there was a 21.6% increase in copper product output from the previous year, while the m-o-m rise was 33.4% in February.

Superior Essex Energy Inc., the US based energy cablemaking division of Superior Essex Inc., began commercial production of its new suite of low voltage energy cables. The new products include 300V and 600V instrumentation cables and 600V control cables for industrial, utility power or station control circuits. The company is manufacturing its new offering out of its Tarboro, NC facility which represents Superior Essex Inc.'s first North American production facility for low voltage energy cables. Superior Essex Energy Inc. has plans to expand its portfolio to supply the Commercial, Industrial and Energy markets.

Doha Cables, a Qatar based cablemaker and subsidiary of El Sewedy Cables, will expand its production capacity for 400V and 500V cables to meet increasing domestic demand. Qatar will host the 2020 Olympics and the 2022 FIFA World Cup and is investing heavily in new infrastructure projects to provide support for planned growth of the local tourism industry. The company also stated that demand from the building sector has been rising. El Sewedy's largest areas of operation are in the GCC, North Africa and Egypt. The company has expressed its plans to expand into other rapid growth nations, including Russia and India.

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.

Mueller Industries Inc., the US based copper tube and fittings manufacturer, announced its end of year 2011 results, reporting net sales of US$491M in Q4 2011, down from US$527M in Q4 2010. The company attributed US$11M of the diffrence in net sales between Q4 2011 and the previous year period to a decline in the copper price. US$25M of the difference was attributed to lower unit shipment volumes, of which, the plumbing and refrigeration sectors accounted for US$14M. The company is optimistic that new housing starts will continue to rise through 2012, boosting copper tube demand.

Mueller Industries, a leading producer of copper tubes and brass products, reported net sales of $594.1M in Q2 2012. After accounting for changes of metals prices, this represents a decline of 1% y-o-y. The contraction was partially offset by a slightly higher sales volume y-o-y.

Furukawa Electric announced that it will commission a new electrolytic copper foil factory, located in Taiwan, two months ahead of schedule, in July 2012. The facility is designed to produce copper foil suitable for the manufacture of lithium ion batteries. Furukawa decided to offshore the foil production capacity last year because the appreciated yen had been limiting its competitiveness in supplying the high growth automotive lithium-ion battery market in Taiwan. The company expects to halve its electricity costs in Taiwan, which represent 30% of the total cost of electrolytic foil production in Japan. Furthermore, it is feared that these costs in Japan are likely to escalate with the ongoing strain on power generation and transmission suppliers. This was caused by the continuing temporary closure of nuclear power facilities as it reviews its position on the use of nuclear power generation.