Copper end use trends

In China, scrap merchants lost so much money in the second half of last year that many are idle; scrap is, therefore, tight in China. Some smelters have also been forced to cut production, led by Jiangxi Copper, who have had a blow-out in their oxygen plant, so we hear, which will take 6-7 months for reparations to be completed. Until 2009, importers had difficulties in opening Letters of Credit; now banks are enabling LCs to be given and opened.

Blog readers have two days to make one-sentence predictions as to the most unexpected major news story of 2009.

With prediction markets being all the rage, this article from Freakonomics is timely.

BEIJING -- China, the world's largest metal consumer, discarded a plan to buy copper to support domestic smelters because producers are still profitable and inventories aren't high, government and company officials said.

Scientists from MIT have grown thin, pure and dense carbon nanotubes that in combination with additives can be used as electrodes to store a higher amount of capacity in batteries and super capacitors.

Suppliers who squeezed money out of PSA/Peugeot-Citroen last year to compensate for high raw material costs should expect to give some back in 2009

South Korea has experienced a sharp decrease in its entire copper semis range production in November 2008 according to the Korean Nonferrous Metal Association. Copper wirerod totalled 46,007 tonnes, falling by 18% y-o-y. Copper plate and strip plunged by almost 42% y-o-y to 10,744 tonnes. Copper tube also declined by approximately 26% to 9,448 tonnes, while copper and copper alloy bar production fell to 16,191 tonnes, a decline of approximately 8%. Overall, copper semis production in November 2008 dropped by 21.4% y-o-y. For the first eleven months of 2008, copper semis output amounted to 1,097,154 tonnes compared to 1,193,092 tonnes from the same period in 2007, declining by 8%. The economy has been hit by shrinking exports and weakening domestic demand. In response to the downturn, the government announced that it will invest 50 trillion won within the next four years in infrastructure and environment projects.

South Korea-based LS-Nikko Copper, the world's second-largest copper smelter, said on Thursday it would cut copper cathode output by about 10 percent due to weak demand in its first such move in more than four years.

The Chinese government is supporting the copper industry by eliminating taxes on copper concentrate imports and finished copper products exports. China is the world's top copper consumer and according to Antaike Chinese copper consumption in 2009 will grow by 2.1%, revised down from its previous forecast of more than 6%. The duty-free trading policies will benefit copper smelters and fabricators, however, weak global demand will continue to take its toll on Chinese exports.

London, January 5 (ANI): A ground-breaking technology that broadcasts electricity may render electrical wiring ancient history, say its inventors. The device called WiTricity beams power to laptops, mobile phones and stereos without cables or sockets.

China will allow tax-free imports of copper, nickel and cobalt concentrate from Feb. 1, as long as the finished products are re-exported, and will also allow duty-free exports of refined copper, unwrought nickel and semi-finished aluminium products.

As more of this gear is installed we begin to see the grid as an extensive two-way communications network, able to collect and transmit information to where it's needed. The next step? Creating the software and setting up the systems that can organize, analyze and ultimately act on the information collected in a way that improves the efficiency, reliability and self-healing capability of our electricity system and makes integration of renewables and distributed generation much easier.

The trendspotters at JWT are predicting: - The mobile device as everything hub: Mobile rules. If you're a marketer, take note, made-for-PC sites don't make the cut for a mobile experience. - Customizable mobile: Apple's iPhone made mobile applications all the rage and other smartphone makers are having to follow suit. JWT says watch for more open mobile systems and an "onslaught" of mobile apps. - Decline of email: If you've tried emailing a teen lately you may have noticed that's considered only slightly less old-school than two tin cans and a string when it comes to communications. Text messaging, social networks like Facebook and Twitter are increasingly preferred by email recipients who are ready to cry uncle under the weight of their inboxes. According to JWT, after a decade of dominance, email will gradually be eclipsed by more efficient, manageable solutions. Hear, hear. - Cloud Computing: Software, storage -- everything we needed in our desktop computers or carried around in our laptops is now in the 'cloud.' Wikipedia calls the cloud a metaphor for the Internet, an explanation that is difficult to convey to new users. I found myself trying to explain this to a friend as I was helping her set up a netbook she received as a Christmas present. She wanted to know: Was it on the computer? On a disk? On a USB drive? I just waved my hands in the air and said 'it's all on the Internet now.' That, plus the appearance of 600 of her holiday photos on an online photo site seemed to convince her. - Social networking for jobseekers: With companies handing out more pink slips than Christmas bonuses in the past month or so, jobseekers who know how to maximize the benefits of such sites as LinkedIn and others will find those social networking skills could come in handy. - Web/TV convergence: This prediction has been paraded out in one form or another for quite a while and no telling if 2009 will be its year. The convergence of entertainment media on one viewing device

Video: the year in robots

Intraday copper three-month prices on the LME rose by 4.1% to US$ 2,940 per tonne on December 29th compared to the closing price on December 24th, affected by higher oil prices and the weaker US dollar. Increases in oil prices are correlated with increases in copper prices since investors see oil as a barometer for the entire commodity class. Then, the weaker US dollar makes metals cheaper for holders of other currencies. However, analysts remain pessimistic about the red metal due to plunging demand as the ongoing economic slowdown will continue to take its toll on the demand for copper.