According to Aurubis, Chinese copper imports may increase in H2 2011, after the decline seen in H1. May imports contracted to 149,235t in May 2011 from 160,236t in the previous month. The figure was also down by 46.7% from the same period a year ago. Aurubis commented that Chinese copper demand was met by stocks in warehouses, which have been heavily down due to recent consumption. The European copper producer said that the fact that Chinese IP in May was strong is an indication of strong copper demand.

It was reported that Furukawa Electric plans to bring forward its capacity expansion plans for electrolytic copper foil due to steady demand from lithium ion battery makers, especially for electric vehicles. The company had previously announced that domestic capacity would expand from 550t/m to 1,000t/m in March 2012. However, supported by increasing demand from EV battery makers, Furukawa will put the time schedule ahead to December 2011. In addition, the company is planning to accelerate the time schedule for its new electrolytic copper foil plant in Taiwan, which was originally due to commence operations in September 2012.

Chinese imports of copper and copper products fell by 39.8% y-o-y to 262,676t in April 2011. Moreover, April imports contracted by 13.7% m-o-m. On the other hand, imports of copper scrap increased by 2.7% y-o-y to 380,000t in April, but fell by 2.6% m-o-m. January to April imports of copper and copper products amounted to 1.2Mt, which represents a fall of 22.6% y-o-y. Conversely, January to April imports of copper scrap rose by 1.9% to 1.4Mt from the same period in 2010.

It was reported that Zhejiang Power Grid Company decided to use aluminium cable instead of copper cable in new low voltage power grid projects. Using 6 km aluminium cable instead of copper in a 100 kV power grid project cut costs by at least 1.92M yuan. In addition, using 340 m aluminium cable in a 220 kV power grid project led to investment reduction of 108,000 yuan. Adopting aluminium cable in low voltage power projects can achieve a cost reduction of 40-70%.

According to the Sao Paolo based electric conductors and non-ferrous metals association Sindicel, the copper semis industry in Brazil has been challenged by high production costs. As a result of sharp fluctuations, the industry has not been able to fully pass on to clients the rise in raw materials prices. Over the past few months, copper prices advanced by 30% whilst Brazilian copper product prices increased only by 12-13%. Therefore, the copper semis sector is realising tighter margins.

Nexans announced that Madeco, its main shareholder, will increase its holding position from 9% to 20%. The French cable maker commented that the agreement reflects the shared views of the two companies. Nexans wishes to have the support of a long-term reliable partner for its growth. In addition, Madeco intends to invest in a promising sector through a reliable downstream company.

German automotive wiring harness maker Leoni reported sales of €2.96B in FY2010, up from €2.16B in the previous year. The 37% y-o-y increase was attributed to the sustained improvement in global economic conditions, particularly in the automotive sector, whose world output advanced by one fifth on the previous year. Leoni commented that the substantial rise in the price of copper accounted for 9% of the sales increase.

It was reported that Jiangxi Copper Corporation (JCC) Copper Foil and Jiangxi University of Science and Technology developed an ultra-thin copper foil with thickness of 1 to 5 microns. This ultra-thin foil is mainly aimed for high-density printing circuit boards, but has a wider application in other end-uses as well. JCC Copper Foil is entirely owned by JCC and after applying this technology intends to proceed to large-scale production of copper foil.

Indian copper miner Hindustan Copper Limited said that demand for copper and copper prices are expected to rise due to the reconstruction work in Japan after the earthquake. It was reported that Japan accounts for about 5% of global copper demand but this will increase as long as reconstruction begins. However, the global demand outlook is negatively impacted by the ongoing unrest in Libya and high oil prices.

Chilean copper producer Codelco expects that new uses of copper, mainly related to its antimicrobial capacity, will boost world demand by 300,000t/y within the next eight years. Potential end use sectors include copper fiber clothes, copper mesh cages for fish farming, and copper surfaces in health care centres and public transport. Codelco participates in development programmes which aim to promote the benefits of using copper.

According to data released by the Japan Copper and Brass Association, Japanese copper semis output advanced by 1% y-o-y to 70,000t in February 2011. The figure was down by 0.4% from January. It was reported that steady demand from the automotive sector, generated by strong emerging markets, offset a slower than expected recovery in the semiconductor industry. However, the association expects that output in March is likely to fall due to the impact of the earthquake. Fabricators experience supply chain disruptions, fuel shortages and power outages.

According to Antaike, Guangxi Nonferrous Secondary Metals' 200ktpy copper wirerod project was approved by Guangxi Development and Reform Commission. Guangxi Nonferrous is mainly engaged in recycling and processing of copper and copper related products.

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.

Chinese imports of copper and copper semis contracted by 36% m-o-m to 235,500t in February 2011, according to customs statistics. The figure was also down by 27% from the same period a year ago. It was reported that utilisation rates of copper semis makers declined after the Chinese New Year, and therefore copper consumption fell. In addition, some semis fabricators had built stock before the festive season, which impacted imports in February. On anticipation of surging copper prices, imports were very strong in January and that led to high inventory levels in Shanghai bonded warehouses.

Chilean private miners association Sonami and copper and mining study group Cesco anticipate that Japanese copper demand will significantly recover in Q3 of the current year. It is expected that the market for copper will remain weak for several months due to the 9.0 earthquake and tsunami that hit the country on 11th March. However, reconstruction-related copper demand is predicted to exhibit significant growth rates from Q3 2011.

Taiwanese end-use sectors that consume copper semis will be impacted by the earthquake in Japan, according to the Industrial Economics & Knowledge Centre. End-use sectors that will face a disruption in the supply or raw materials and parts include display panels, semiconductors, machinery equipment and solar cells. Major Japanese fabricators of electrodeposited copper foil and rolled copper foil JX Nippon Mining & Metals and Hitachi Cable have factories in areas that have been impacted by the earthquake.

Major Japanese copper semis and wire and cable manufacturers were impacted by the devastating earthquake. It was reported that Hitachi Cable's establishments in Densen, Hidaka, Takasago and Toyoura were affected, while the Minato plant was flooded by a 1.5-metre tsunami. Fujikura's facilities in Sakura, Chiba, which engage in the production of optical materials, were also impacted. Furukawa Electric's Chiba offices, which are located at a landfill, were affected due to soil liquefaction. The company's production equipment at its telecom cable factory experienced damages. Mitsubishi Shindoh, a copper and alloy semis fabricator, saw its plumbing operations partially destroyed. San-Etsu, a brass bar specialist, is shutting down production at its Shin-Nitto plant in Ibaraki, without any significant damages reported whatsoever. Production will be transferred to two other factories.

It was reported that a cable project will be commenced within one month in Hubei Province, China. The project will be located in Shenzhen Industrial Park, Yichang City, and will engage in the manufacturing of 110KV, 220KV and 500KV cables. It is expected to be commissioned within the following 12 months. The project is a joint investment of the Yichang government, Federal Cable Co. and Si Kaite Germany Heavy Machinery Manufacturing Co.

Copper producer Kazakhmys expects that copper prices will remain strong at least for the next two years as demand growth outpaces supply. The company said that delivering copper projects is not easy whilst the market for copper is growing much faster than projects can be delivered. It was reported that Kazakhmys intends to remain a mining company in the region where they have expertise.

Chinese imports of refined copper and copper semis plunged by 35.4% m-o-m to 235,469t in February, the lowest level in 25 months. Imports were also down by 26.9% from the same period a year ago. Analysts were expecting that monthly imports would fall, given that buying activity was impacted by the Chinese New Year. However, the outcome was worse than anticipated, partly attributed to demand concerns generated by soaring oil prices and tighter credit control.