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Data released by the Japan Copper and Brass Association showed that copper semis output rose to 72,328t in May 2011, a 2.4% m-o-m and 0.1% y-o-y increase. Production was supported by strong demand from energy efficient air conditioner makers, who raised production ahead of the peak demand season. This compensated for weak demand from the semiconductor and automotive sectors.

Bill Baldwin -- Baldwin Anthony -- Analyst When we see the price of aluminum in relation the price of copper become more favorable for aluminum, does that show up in your demand for aluminum fairly quickly or not at all or over a period of time? Daniel Jones -- Chairman, President and Chief Executive Officer Well that's been debated over time. We prefer Encore Wire consistently and will continually prefer to ship and sell copper. That's just the way it is. The aluminum piece of that that you're referring to is a substitution depending on the relationship between the cost of each. Normally if aluminum is more expensive so is copper and vice versa. When copper gets to a certain dollar amount, there's no question that in the conversation the substitution question comes up. There are other costs involved with that most of the time. It's not a new scenario, but it doesn't necessarily increase the demand for aluminum beyond what the increase in the demand of copper would be. But it does enter into the conversation in the quote stage pretty early on when copper gets really expensive about what would it take to substitute aluminum for this piece of copper. And so in that, it's definitely in the conversation.

According to data from the Copper and Brass Servicenter Association(CBSA), total shipments from US brass and copper mills slipped 1.1% y-o-y in 2012, to 261.5Mlb (118,600t). Data from November had indicated that year-to-date shipments were roughly unchanged from 2011, however, a 16.9% m-o-m drop in shipments in December tipped total shipments into contraction territory for the year. In general, copper semis shipments were stronger than alloy shipments, with copper rod shipments up 8.3% in 2012, to 64.4Mlb (29,200t). Total alloy shipments fell 5.4% in 2012, to 139.6Mlb (63,300t), with 300-series alloy RBS shipments declining by the largest amount in the year, falling 11.9% to 61.3Mlb (27,800t).

According to Aurubis Buffalo's vice president of marketing and sales, demand for brass mill products in the US has been strong so far in 2013. The company has seen a strong pickup in demand from sectors including ammunition, electronics, heating and HVAC so far this year. The executive said that lead times at service centers were longer than eight weeks in January for flat-rolled products and that the company is considering hiring more workers at its Buffalo operation to meet the demand.

The demand for copper flat-rolled products softened coming into March after a strong start to the year, according to sources at some US service centers. Lead times for some copper products, which were quoted as long as eight weeks back in January, may have shorted to six weeks or less in March according to an American Metal Market report. A drop in demand for appliances and connectors market was noted by some sources contacted by AMM, but sales of ammunition, a key end-use of flat-rolled brass, have remained buoyant since the start of the year.

Aurubis AG reported that its production of copper wirerod was down by 22% y-o-y and 14% q-o-q to reach 155,000t in Q2 2012, marking a faster decline from the 17% y-o-y fall in Q1 2012. The company said that the decrease in volumes was driven by slower demand from cable and enamelled wire producers. This came despite stronger demand from the automotive sector and signs of a pick-up in demand from the infrastructure sector in late Q2. Aurubis also produces copper and copper-alloy shapes, pre-rolled products, finished flat rolled products and speciality wire. Output of shapes fell by 25% y-o-y and 13% q-o-q to reach 41,000t in Q2, due to weak demand from semi-fabricators. However at Schwermetall, the company's 50%-owned subsidiary, production of pre-rolled strip decreased by only 5% y-o-y to reach 49,000t in Q2, as demand from semi-fabricators for this product held-up better. The year-on-year change in finished flat rolled products output was distorted by the acquisition of Luvata's rolled products division (RPD). However, volumes in the division did fall by 5% q-o-q reaching 57,000t in Q2, contributing towards across-the-board sequential declines for Aurubis' copper products output in Q2.

It was reported that Goldman Sachs anticipates a rise in European copper demand in the first half of 2012, albeit to a lower level of consumption than that which was seen pre-Autumn 2011. The company reasoned that current demand is unsustainably low, caused by fear and destocking, with European orders falling by as much as 20-50% since August 2011. It is thought that a rise in buying from both industry consumers and speculators will begin in early 2012. In addition, the bank expects an acceleration of Chinese demand growth in the first half of 2012.

General Cable reported a rise in sales volume by metal weight of 2% q-o-q (+5% y-o-y) in Q2 2012 due to demand in France and the Mediterranean as well as stable demand in most ROW and North American businesses. Bright spots for demand included: ongoing grid investment and the resultant demand for medium voltage cables in France; stronger demand from telephone and electric utility businesses in North America; improving domestic conditions following the Q3/4 2011 severe flooding in Thailand; and strong mining activity in Chile.

A spokesperson for Xstrata expressed the company's expectation of improved copper demand from China in the imminent future at a Latin American investment conference in Sydney on 22nd May. The company expects to see a seasonal uptick in H2 2012 and said that the poor demand in Q1 was in line with its prior expectations. Xstrata intends to invest US$7B in the development of copper deposits over the next three years, increasing its copper output by approximately 60%. This bold move comes at a time when some of the company's rivals, including BHP Billiton and Rio Tinto, are reconsidering their expansion plans over fears of unstable copper demand in the current economic climate.

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.

Aluminum may have been responding to two different events in the week ending July 11 when it hit a succession of all-time price highs , but the market remains divided over the medium-term direction, given that world fundamentals point to weak demand and rising stock levels. \n\nFundamentally, however, analysts and market players were mixed in their impressions of whether the price could be sustained, especially as word emerged from China that the cuts may not be a certainty. \n\nAluminum finished floor trade for the week at $3,318/mt, up $150 from the July 4 closing price of $3,168. Fundamentally, however, analysts and market players were mixed in their impressions of whether the price could be sustained, especially as word emerged from China that the cuts may not be a certainty. \n\nPointed out a US broker, "When you hear producers [in China] are shutting production because demand is weak, that's normally bearish," yet the market saw "insane" price moves. "I hear metal just continues to pour into warehouses, and not all of it reported, obviously, [since] otherwise you'd see it in the stock numbers. A lot is going off warrant," he pointed out. \n\n\n

The International Copper Promotion Council (ICPC) is expecting Indian demand growth to be cut by almost half, to 8-9 percent this fiscal year, down from an average of 15% over the past two years. Strong industrial growth, residential construction and consumer spending have spurred on demand in Asia's third-largest economy, with copper consumption reaching 512,000t in 2007. However, rising inflation, and the subsequent hike in interest rates, looks set to cool demand growth this year. Industrial growth for June was reported at 5.4%, nearly half what it was in 2007. "The consumption of copper -based appliances in the white goods segment will slow down due to a reduced rate of growth in disposable incomes. This will also be a dampener on copper consumption," said a member of the ICPC in India. Ongoing government investment in power infrastructure and a growing emphasis on more energy-efficient appliances will protect demand, according to the ICPC, "partly cushioning the impact of a moderating economy."

Amid the ongoing global economic slowdown, the construction of power grid projects in China is proceeding well, and demand for electrical wire and cable is expected to remain robust. However, even though power consumption has exhibited a growing trend, the month-by-month growth rate has slowed. As a result, copper semis related to electrical equipment have currently shown bearish demand signals. For the first 10 months of 2008, newly built power supply capacity amounted to 58.462m KW, while newly built capacity in October declined by 73% year-on-year.

NEW DELHI: Riding on the back of improved performances and demand from the automobile and construction sectors, consumption of steel increased by 5.7 per cent to 4.45 million tonnes in February indicating a revival in demand, according to official sources.

SINGAPORE -(Dow Jones)- Copper mine supply could struggle to match forecast demand growth in the period to 2013, Macquarie Bank said in a report dated Tuesday. The bank said copper demand was expected to be 4 million metric tons higher in 2013 than 2009, implying that a significant number of new mine projects will need to come onstream to balance the market.

MEXICO CITY (Reuters) - Copper giant Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research, Stock Buzz) said on Thursday strong demand from China coupled with tight global supply meant prices for the red metal were unlikely to fall below $2 per lb in 2009, although the company maintained its annual guidance of $1.75 per lb. "We believe that the infrastructure plans in the United States and China are going to lead to important demand," Grupo Mexico's Chief Financial Officer Daniel Muniz said at the Reuters Latin American Investment Summit in Mexico City.

Ningbo Kangqiang Electronics reported that despite the recent liquidity tightening in China, their copper demand expectations remain optimistic. The company, which uses copper plate and strip, said that copper demand will peak in March and April, when Chinese copper fabricators traditionally increase production. It was reported that Chinese copper semis manufacturers will see demand for their products rise after the Lunar New Year (February 14th).

Japanese output of copper and copper alloy fabricated products increased by 5.4% to 73,680 tonnes in November, slightly down from 74,079 tonnes in October, according to the Japan Copper and Brass Association. This figure includes sheets and tubes, mainly used in automobiles and construction. Demand for copper products was supported by both local consumption and overseas shipments. This year's hot weather has boosted Demand from the air-conditioner sector, where manufacturers have been building up inventories after robust sales in the summer.