Bank of America-Merrill Lynch is expecting that the world ex-China has potential for copper demand growth too. As a result, it revised up its copper price forecast for 2010 to US$7,125/t. This represents a 1.8% increase compared to its earlier anticipation. Its forecast for the current year is revised up by 5.6% to US$5,137/t.

According to the China Nonferrous Processing Industry Conference, copper products output in China increased by one million tonnes annually in the past three years. Data released showed that production amounted to 5.3 million tonnes in 2006, 6.3 million tonnes in 2007 and 7.5 million tonnes in 2008. It was reported that Chinese output accounted for 30%, 40% and 50% of world output in 2006, 2007 and 2008 respectively. In addition, the General Administration of Customs said that Chinese copper imports in October reached 263,000 tonnes, an increase of 14% y-o-y. However, on a m-o-m basis the figure contracted by 34%.

Luvata officially opened its first copper tube plant in Mexico, aiming to fabricate tubes for the HVACR industry. The company sees the current downturn in the commercial tube market as a convenient time to establish its position in the marketplace and be ready when the market picks up. The Monterrey-based plant has started with small but steady deliveries since mid-June. Currently, the plant employs 180 staff with the plan to raise workforce to 250 when the full capacity level of 2,500t per month is reached in H1 2010. Luvata aims to supply several major clients but also expand its clientele to new and smaller Mexican customers. The company intends to differentiate itself by offering just-in-time deliveries, enabling its clients to run reduced inventory levels.

Golden Dragon, based in China's Hunan province, opened a new copper tube plant in the city of Monclova, northern Mexico. The investment of the project amounted to US$100 million and represents the biggest Chinese investment ever made in Mexico. The plant covers 200,000m2 and will employ 900 staff. Currently, annual output capacity is 60,000t of copper tube for air conditioners but the plan is to raise that to 120,000t. The new project will benefit from low industrial costs and a competitive exchange rate; it aims to supply the North American and European markets.

General Cable, the US wire and cable maker, announced that its net income in Q3 2009 amounted to US$16.4 million compared with US$50.5 million in the same period last year. This is a 68% y-o-y plunge. Net sales in Q3 2009 added up to US$1.08 billion, down by 25% y-o-y on a metal adjusted basis. In the same period, operating income plummeted by 59% y-o-y to US$49.4 million. The company expects that in Q4 markets in developing regions will perform relatively better compared with developed regions. This is partly attributed to infrastructure projects and better credit conditions.

The Japan Copper and Brass Association said that copper semis output in Japan fell by 17% y-o-y to 66,145t in September. But from a m-o-m perspective, September rose by 5%, the sixth consecutive monthly improvement. It was reported that even though it was the 14th y-o-y decline, the decrease narrowed supported by the pick up in demand from the semiconductor, automobile and electronics industries. It is expected that demand in FY2009 will amount to 713,930t; that will be the lowest level since FY1975 and will represent an 11% contraction compared with FY2008.

According to data released by the Japanese Electric Wire and Cable Makers' Association, Japanese copper wire and cable offtake in September contracted by 17% y-o-y, the 12th sequential monthly decrease. Shipments in September amounted to an estimated 57,800t, a 14% m-o-m increase. The copper wire and cable sales forecast for FY2009 has been revised down to 648,000t compared to an earlier projection of 705,000t.

Nexans published its Q3 2009 sales figures and reported revenues of €1.27 billion (US$1.90 billion) compared to €1.69 billion (US$2.53 billion) in Q3 2008, a decline of 25%. At constant metal prices, sales in Q3 2009 amounted to €988 million (US$1.48 billion), which corresponds to a 19% organic decrease. For the nine months ending September 30 the company reported an organic fall in cable business sales of 17%, based on constant metal prices calculations. This compares with a 16% contraction experienced in H1 2009. Nexans said that lower building cable sales in Europe and Asia-Pacific as well as setbacks in the execution of high voltage contracts affected its sales figures. Energy cable revenues in Q3 were down by 13% y-o-y; those of telecom cables plunged by 19% y-o-y. In line with planned cutbacks in production capacity, electrical wire sales in Q3 were down by 35% y-o-y.

Luvata said that it will restart idled capacity in Europe and the US in 2010. The decision is based on the slow but steady recovery that the company is experiencing on a monthly basis. It was reported that the Chinese plants that make air con tubes and cooling pipes resumed production in the second half of June after a month-long cut. Luvata expects that its growth will be a function of GDP and gains in its market share.

According to data released by the Japanese Electric Wire and Cable Makers' Association, wire and cable shipments in Japan amounted to an estimated 50,100t in August compared to 58,032t in July. On a y-o-y basis, that was a decline of 17.7%. While there are signs that market demand is improving, the figure indicates that the widely expected economic recovery is not solid yet.

Japanese electric wire and cable manufacturer Fujikura Ltd reported consolidated financial results for the first quarter ended 30 June 2009. The company achieved sales of ¥112.93b (US$1.19b) for the first quarter, 28.7% lower than the same period a year ago. Operating income for the first quarter was ¥1.84b (US$19.4m), 50.3% lower than the year-ago level. Net income for the same period was ¥111m (US$1.17m), 94.3% lower than a year ago. The company is expecting to make a net loss of ¥800m (US$8.43m) for the first half ending 30 September 2009.

Furukawa Electric announced that in Q1 of fiscal year 2009 it suffered group net losses of Y3.51 billion (US$37.1 million) compared with profits of Y6.89 billion (US$72.7 million) in the same period of 2008. Revenues in Q1 FY2009 amounted to Y166.74 billion (US$1.76 billion) vs. Y287.04 billion (US$3.03 billion) realised in the same period of 2008. For H1 FY2009, the company is expecting to achieve group revenues of Y376.00 billion (US$3.97 billion) whilst for the full FY2009 Y807.00 billion (US$8.52 billion).

The Copper and Brass Fabricators Council said that US imports of brass mill products in May declined by 34.9% y-o-y to 35,348,294 lbs whilst exports plummeted by 43.9% y-o-y to 16,120,361 lbs. The leading exports destination in May was Canada and most imports came from China. Imports of flat rolled products reached 6,855,548 lbs, while exports amounted to 5,671,217 lbs. Imports of tube products were 20,966,908 lbs and exports 5,259,454 lbs. Rods, bars and sections imports were 5,810,096 lbs whilst exports 3,628,657 lbs. Finally, imported alloy wire added up to 1,715,743 lbs and exports totalled 1,561,033 lbs.

According to a statement made by JP Morgan Securities, copper demand in China may experience strong growth in Q4. This argument is based on the fact that the large amount of accumulated copper inventories in China will be processed. As a result, copper stockpiles will run down. The forecast projected an annual growth in Chinese copper demand of 7-8% for 2009, backed by robust demand in power infrastructure. Chinese copper imports in April reached 400,000t, an increase of 7% compared with March.

Zhejiang Hailiang Co. Ltd., a Chinese copper processor, will construct a copper tube project in Vietnam. The investment will amount to US$47.2 million and will have production capacity if 71,000 tonnes per year, as a new 36,000-tonne facility will be added to the existing 35,000-tonne that has been relocated. It is anticipated that the project will be operational in 2010. The new project will benefit from the Vietnamese favourable investment policies as well as lower production costs.

According to a study carried out by Sindicel, the Sao Paulo based non-ferrous metals association, Brazil's per capita copper consumption rose by 50% in 2002-2008 to 2.1 kg. Copper usage has grown 30% higher than the GDP growth in the same period. Sindicel's president Sergio Aredes said that the significant rise in copper usage reflects the growth in construction and high-tech products in the Brazilian economy. The association also announced that copper semis production in 2008 generated US$4.0B in revenues. Robust demand in 2008 was supported by strong consumption in the construction, energy, automotive, mining and steel sectors. But Sindicel anticipates that sales in 2009 will decline (construction by 15%, infrastructure by 19% and telecommunication wire and cable by 10%).

Jinglong Electric Material Co. Ltd. has started a special type enamelled wire project in Tongling City, Anhui Province. The company was established in 2003, engaging in the production and sale of enamelled wire. Capacity was restricted to 10,000t per annum due to dispersed plants. But by consolidating operations, Jinglong will reach annual capacity of 25,000t, also meeting local copper demand. The new project occupies 53,000m2 whilst its investment amounts to 80M yuan (US$11.7M). It is anticipated that upon reaching full capacity, the company will realise annual revenues of 950M yuan (US$139M).

With a view to cutting operating costs, Mitsui Mining & Smelting Co. and Sumitomo Metal Mining Co. are planning to combine their copper and alloy businesses. The new joint venture will consist of equal shares of the two companies and will be Japan's biggest brass strip maker. Major end-use applications include terminals and connectors for cars and electronic components. According to the plan, the joint venture will cease some sales units and purchase raw materials on a joint basis. It is anticipated that annual cost savings will amount to 1B yen (US$10M).

El Sewedy Cables announced that it will establish a low-voltage power cable plant in Yemen. The investment of the project will amount to US$42M and it will be the first cable manufacturer in the country. The capacity of the plant will be 12,000t of copper and aluminium cables per annum. The project, to be build on government leased land and tax exempt for five years, will be a joint venture between El Sewedy Cables (70%) and Hassan & Masoud Abo Gaig (30%).

Aurubis said that demand for its products bottomed in April and showed some recovery signs in May. As a result of weakening demand in Q1, the company cut copper wirerod output by 25% to 168,000t. The company planned to cut working hours in its copper wirerod plant in Hamburg but the measure was not implemented as demand strengthened. Luvata reported that its copper semis sales contracted on average by 25% y-o-y in Q1. The worst hit end-use sectors were the automotive and construction industries, which plunged by 40% y-o-y in Q1. In response to the economic crisis, the company has cut production in the US, Europe and China. Both Aurubis and Luvata said that as their customers have kept stocks to a minimum the market now experiences stabilisation. Luvata highlighted that its recent demand increase may be only the result of restocking. Also, extended summer holidays will impact this rebound.