Xinmao announced that it decided to call off its offer for Dutch cable maker Draka, which valued the company at €1 billion in total. The Chinese firm cited the time pressure which occurred after the placement of Italian cable maker Prysmian's official offer as the most important reason for the withdrawal. The European Commission will review the proposed acquisition by Prysmian in early February.

According to the General Administration of Customs, Chinese imports of copper and copper products registered a 6.7% y-o-y and 2.0% m-o-m decline to 344,558t in December 2010. The November figure had seen a 21% y-o-y increase. The fall in imports is partially attributed to soaring copper prices, which discouraged downstream buyers from stocking copper. In addition, the negative arbitrage window between SHFE and LME did not trigger Chinese imports. However, imports may rebound in Q1 2011 on anticipation of increased domestic demand after the Chinese New Year.

A number of copper semis projects were recently announced in China. Guangzhou JCC Copper Semis, which is a subsidiary of Jiangxi Copper, said that its 400ktpy copper wirerod project was started in Guangdong Zengcheng Economic and Technological Development Zone. It is expected that investment will amount to 2 billion yuan. Another copper wirerod project was initialised by Yingtan Jiangnan Copper in Yingtan Economic and Technological Development Zone. Capacity will amount to 50ktpy of copper wirerod, using copper scrap as raw material. The cost of the project will total 150 million yuan and it is anticipated that it will realise 320 million yuan of operating income when it is commissioned. In addition, a 40ktpy copper semis project was commissioned by Jiangxi Tungsten Catalana S. L. Copper Semis. Adopting European technology, products include high speed railway slip line.

It was reported that Hefei Risheng Science and Technology Co. signed a contract with Guang'an Economic and Technology Development Zone to construct a 30ktpy copper profile project in Guang'an, Sichuan province. The project, which also consists of a 100ktpy aluminium profile business, will cost 470 million yuan and is expected to generate revenues of 3.2 billion yuan and profits of 500 million yuan. In addition, the company will collaborate with Sichuan Dongyang Housing Development Co. to build 20 production lines of single crystal copper bond wire and 20 production lines of micro electromagnetic wire in Guang'an. Total investment will amount to 500 million yuan.

The Shanghai Futures Exchange announced that it will begin delivery of copper and aluminium futures contracts at warehouses at Yangshan port. Settlement will be in RMB without tax and that will reflect international prices. The Shanghai Yangshan port bonded zone has been approved by the State Council and was officially put in operation on 10th December. The area is also home to a number of trading houses and logistics companies.

It was reported that Furukawa Sangyo Kaisha, Ltd. will establish a sales base in Guangzhou, China, in February 2011. Furukawa Electric's core trading subsidiary aims to benefit from the large number of electronics and auto makers located in Guangzhou City. The company intends to expand sales of electric wire for appliances, wire harnesses, copper and brass semis, as well as aluminium products.

According to estimates released by the International Copper Study Group (ICSG), the global refined copper market showed a seasonally adjusted deficit of 179,000t in the first nine months of 2010, compared to a surplus of 184,000t in the same period a year ago. The ICSG reported that the market balance for the full year is expected to show a significant deficit due to stronger than anticipated demand.

Further to Nexans's announcement that they would make an offer to buy Draka's outstanding ordinary shares for €15 per share, Draka commented that such an offer would substantially undervalue the company. Draka characterised the offer as inadequate, not addressing the position and legitimate interests of all stakeholders. Strategic alternatives, including continuing Draka's stated stand-alone strategy, will be reviewed. In response to the above announcement, Nexans said that their offer represented an attractive premium of 28.4% compared to the average closing share price of the three months preceding October 18. As a result, Nexans commented that their offer fully values Draka.

Mitsui Sumitomo Metal Mining Brass & Copper, a Japanese brass and copper alloy strip fabricator, plans to produce an average of 5,450t/m in H2 FY2010-2011, ending in March 2011. The company holds client orders of several hundred tonnes until the end of 2010 and considers that demand will be steady. However, it remains cautious about demand from the automotive industry as it may decline in early 2011. According to production plans, H2 FY2010-2011 output in Saitama, Japan, will amount to 3,600t/m whilst that in Mie, Japan, to 1,850t/m. Actual production in H1 FY2010-2011 reached 5,400t/m (3,600t/m in Saitama and 1,800t/m in Mie). It was reported that the automotive industry accounts for 45% of the company's output. Automotive makers are expected to cut their output by 20%, now that the Japanese government's eco-friendly car subsidy scheme has ended. As a result, automotive component makers are anticipated to cut production by 5-10%. To respond to that possible downturn, Mitsui Sumitomo Metal Mining plans to increase sales to consumer electronic product manufacturers.

Siemens VAI Metals Technologies received an order from Southwire Company to supply the equipment for Chinalco's new copper wirerod mill. The plant will be located on a greenfield site in Kunming, southwest China, and is expected to be commissioned in late 2011. Siemens will be responsible for the engineering, manufacturing and commissioning of all the equipment for the SCR 4500 wirerod mill. Capacity will amount to 35 tonnes per hour.

Nexans, the French cable maker, announced that its new cable plant in Qatar starts commercial production. Nexans's joint venture (JV), the Qatar International Cable Company (QICC) is located in Mesaieed Industrial City, which is 40 km from Doha. The new facility employs more than 100 staff, and it is expected that it will generate annual revenues of more than US$100 million by 2011. Nexans said that the plant will engage in the production of LV, MV and low-end HV power cables for energy infrastructure and building projects. It will also produce special cables for the oil and gas industry. Potential target markets include Qatar, the GCC and Yemen. The power cable plant occupies 19,000 sq.m. on an overall plot of 70,000 sq.m., close to a harbour that is reportedly developing as the largest in the Middle East. QICC was established in 2008, as a JV between Nexans (30%), Special Projects Company and Al Neama Industrial Co.

The Kuwait Fund for Arab Economic Development (KFAED) will provide a loan to Bahrain's National Electricity and Water Authority to finance a 220 kV transmission development project. Funds will amount to KWD15M (US$52.8M) whilst the project aims to reinforce Bahrain's power grid. The project envisages the construction of ten 220 kV substations, and laying 515 km of 220 kV underground power cable. The project is expected to be completed by the end of 2012; it is anticipated that total investment will reach US$657.8M.

According to the International Copper Study Group, the world refined copper market is expected to exhibit a surplus of 200,000t in 2010, up from a surplus of 166,000t in 2009. The ICSG believes that increased supply is forecast to match the growth in demand. After the 36th regular meeting of its statistical committee in Antofagasta, Chile, the ICSG reported that refined production is estimated to reach 19.1Mt in 2010 whilst consumption is projected to total 18.9Mt. As for 2011, it is anticipated that the refined copper market will see a deficit of 435,000t, with production at 19.3Mt and consumption at 19.7Mt. It was commented that improved economic activity will boost end-use demand faster than the growth in production. In addition, refined production will grow only slightly due to a shortage of concentrates.

Kia Motors, South Korea's second largest automotive manufacturer, announced that it is recalling 35,000 Souls and Sorentos because of a fire hazard. The auto maker said that its 2010 Soul with the Advanced Lighting Speakers and the 2011 Sorento with the Interior Accent Illumination have a defect with the wiring harness that could cause an electrical short and possibly a fire. Until a repair could be made, Kia advised drivers to turn off the lights. The company sold more than 1.6 million cars in 2009.

El Sewedy Cables said that profits surged by 53% y-o-y to 270 million Egyptian pounds in Q2 2010 (US$47 million), beating analysts' forecasts. The company engages in the production of cables for the power and telecommunication sectors. It was reported that because other cable makers had cut output due to the recession, El Sewedy was offered the opportunity to boost exports and increase profit margins in 2010. The company has production facilities in Egypt and 10 other countries, and exports to the Middle East, North Africa, Spain, Portugal, eastern European countries and Brazil.

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.

According to the Japan Copper and Brass Association, Japanese output of rolled copper products rose by 21% y-o-y to 75,094 tonnes in July 2010. The figure represents a 21-month high, supported by strong exports to China and other Asian countries. It was also a 3% increase from the previous month. It was reported that Japanese output exhibits steady recovery; however, a stronger yen and the end of government subsidies for eco-friendly cars at the end of September will challenge the demand outlook in the second half of the year. In addition, the Ministry of Finance said that Japan's refined copper exports rose by 5% y-o-y to 44,875 tonnes in July, the first y-o-y increase in nine months. China accounted for 45% of total exports in July, compared with 41% in June.

Delphi, the wiring harness manufacturer, plans to shut down its Czech unit. The plant is located at Ceska Lipa, 90 km north of Prague, and serves auto makers such as BMW and Audi. The job cuts will take place in stages until the closure will be completed by the end of May 2011. As a result, all 1,400 employees will be affected. The trade union commented that the company plans to relocate to lower cost places. The Czech Republic has attracted foreign investment related to the automotive industry; however, due to rising costs, some companies decided to relocate.

According to an interview that Masayoshi Matsumoto, president and CEO of Sumitomo Electric Industries, gave to Japan Metal Bulletin, the company eyes leverage measures to achieve its 5-year management plan ending in March 2013. SEI aims to achieve consolidated net revenues of 3 trillion yen and operating profits of 210 billion yen in FY ending in March 2013. It was reported that the company may not achieve the above targets solely by organic growth. Business leverage in electric power and energy fields is a possibility. SEI realised consolidated net sales of 1.84 trillion yen and operating profits of 51.7 billion yen in FY ended March 2010.

According to China's General Administration of Customs, inbound shipments of refined copper amounted to 224,723 tonnes in July 2010. The figure represented a 6% increase from the previous month and a 23% decline from year ago levels. Increased demand for imports in June was largely a result of arbitrage opportunities, which enabled traders to generate profits by buying copper from London and selling it to Shanghai.