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About Copper
Copper plays an integral role in global industrialized development. Its unique chemical and physical properties including a high electrical conductivity, resistance to corrosion, and excellent malleability and ductility, make it a superior material for use in the building construction, electrical energy, telecommunications, transportation and industrial machinery businesses. Wire and cable products, used principally as energy cable, building wire and magnet wire, account for as much as 75% of copper consumption. Copper is also an important metal in non-electrical applications such as plumbing, roofing and, when alloyed with zinc to form brass, in many industrial and consumer applications. The building and construction industry accounts for approximately 37% of worldwide copper usage. Source:ICSG.
Copper Market
After ending 2005 with a deficit of 120,000 tonnes (t), the copper market in 2006 turned to a calculated surplus of around 330,000 t. Projections for 2007 indicate an additional surplus around 280,000 t, increasing to 500,000 t, in 2008. This does not take into account changes in China's State Reserve Bureau (SRB) stocks.
World copper mine production in 2007 is projected to rise by 6.3% to 16.0 million tonnes (Mt), an increase of about 0.9 Mt compared to 2006 owing to new mine developments and increased capacity utilization. Production in 2006 was essentially unchanged from that in 2005 owing to production problems in Chile, Indonesia and Mexico. Mine Production in 2008 is expected to increase by +7.3% to 17.1 Mt. World refined copper usage increased by only 2 % in 2006 to 17 Mt, primarily due to a decline in U.S. usage and flat apparent demand in China, the two biggest refined copper using countries. The main contributors to 2006 growth were the EU, Japan, India and the Russian Federation. In 2007, refined copper usage is projected at 17.8 Mt, an increase of about 4.7% compared to 2006. Apparent refined usage in China is expected to increase along with continued growth in India and Russia, while demand is expected to remain essentially unchanged for the EU, Japan and the United States. World copper use in 2008 is projected to grow by 3.6% to 18.4 Mt.
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