Copper end use trends

It was announced that Sumitomo Electrical Wiring Systems will close its New Model Development Centre by April 2011. The facility is based in Bowling Green, Kentucky, engaging in the development of wire harnesses and electrical components for the automotive industry. Some local operations will move to Marysville, Ohio and Lexington to be closer to end-users. In addition, some production operations will migrate to Mexico. The decision of the company will result in some 100 job losses.

ICSG 1 Feb 09 - Based on existing facilities and announced project developments, annual mine production capacity in the period 2009-2013 is expected to grow at an average rate of around 4.3% per year (%/yr) to reach 23.1 Mt in 2013, an increase of around 3.6 Mt (19%) from that in 2009. Of the total increase, copper in concentrate capacity is expected to increase by 2.7Mt (4.3%/yr) to reach 17.9 Mt and solvent extraction-electrowinning (SX-EW) production by 820,000t (4.4%/yr) to reach 5.2 Mt. Most of the new mine projects and expansions are located in Brazil, Chile, Congo, Mongolia, Peru, the United States and Zambia, which together account for around 2.6 Mt (73%) of the projected mine capacity increase during this period. Annual smelter capacity is projected to grow by an average of 2.6%/yr to reach 20.2 Mt in 2013, an increase of 2 Mt (11%) from that in 2009. Asia will be the leading contributor to growth (1.8 Mt), with expansions and new projects expected mostly in China, but also in India, Indonesia and Iran. Africa is the second leading contributor owing to developments in Zambia. North American smelting capacity will fall by 12% (250kt) due to closures of plants in Canada. The ICSG tabulations indicate that world refinery capacity will reach 26.6 Mt in 2013, an increase of 3.2 Mt (13%) from that in 2009. About 2.3 Mt of the expansion is expected to come from electrolytic refineries and 820,000t from electrowinning capacity. Electrolytic refinery capacity growth is projected to average 3.1%/yr, exceeding the projected growth in smelter capacity, and electrowinning capacity growth (at the refinery level) is expected to average 4.3%/yr. About one half (1.5 Mt) of the world refinery capacity increase during this period is expected to come from electrolytic refineries in China; about 25% (830,000 t) from electrolytic capacity increases in India, Indonesia and Iran; and about 20% (600,000 t) from electrowinning capacity increases in Congo, Peru and Zambia.

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).

According to data released by the General Administration of Customs, Chinese imports of unwrought copper and copper semi-finished products declined by 20.9% m-o-m to 292,096 tonnes in January. It was reported that traders turned to material in bonded warehouses to satisfy local demand. The figure was far lower than earlier expectations and reversed December's rise, which amounted to 27% m-o-m.

Sul filo di lana, nel corso dell'ultima discussione in merito al decreto Milleproroghe, il senatore del Pdl Salvo Fleres ha presentato un proprio emendamento che prevedeva lo stop incondizionato al rilascio di nuove licenze per le parafarmacie e il contingentamento di quelle già aperte ad un parametro d'abitanti (una ogni 20mila abitanti) tale da determinare la chiusura della maggioranza degli esercizi aperti con il decreto Bersani. (poposta che non ha trovato seguito per la presentazione da parte del Governo di un maxiemendamento).