COPPER (Cu) PRODUCERS

[NYBob]

Northgate NXG - report on copper:

According to a January report from the
International Copper Study Group
(ICSG): In the first 10 months of 2007,
global copper consumption rose 7.2%
compared to the year-ago period, despite
a drop in consumption across the
Americas of 3%.
The ICSG notes that the U.S. consumes
just 12.4% of global production,
down from 21.5% in 2000.
Chinese consumption has grown to 22.7% of
the world total, up from 12.8%
at the start of the decade.
All of the copper being produced is consumed,
as stocks have remained little changed
for the past three years.

http://www.icsg.org/

Another misperception is that Chinese consumption
of metals is used largely to
produce goods for export.
That notion is so far-fetched that is difficult
to comprehend how anybody could possibly
believe it.
An analyst with Jinrui Futures noted
that “around 80% of the copper
used in China goes into power
generators, grid networks and
construction”.

The Wall Street Journal,
Why copper prices keep rolling on. Feb. 4, 2008.

China’s infrastructure spending is well
documented.
Morgan Stanley estimate that $346 billion is
required for electricity
generation and distribution in 2006–10.

That comes on top of another $525 billion for
railroads, airports, subways,
highways, water and sewage systems
in China’s current five-year plan.

Infrastructure – A Global Opportunity;
U.S. Funds;
www.usfunds.com
Rio Tinto, the world’s second-largest
miner, said last week that
“China already accounted for
47 per cent of all iron ore consumption,
32 per cent of aluminum
and 25 per cent of copper.”

Tom Albanese, Rio’s chief executive, has
predicted that “within the next couple of
years this will move to
58 per cent of all iron ore,
45 per cent of aluminum and
a third of all copper.

Even with the assumption that the current
growth intensity will slow, we are looking
at China consuming a higher percentage
of global supply.”
Albanese estimates that by 2015,
China will be consuming nearly
a billion tonnes of iron ore a year.
http://business.timesonline.co.uk/tol/business/markets/china/article3261567.ece.

China is only a part of the story for metals.
“Infrastructure spending in the Middle East,
Russia, Central and Eastern
Europe, Turkey and South Africa is
expected to total $575 billion
(289 billion pounds) over the next three years…

Developed markets, on the other hand,
maintain a rising demand for
replacement infrastructure,” according to
Citi Private Bank as reported by Reuters:

Froth comes off commodities, February 1, 2008.

A report for the Organization for
Economic Co-operation and
Development estimated total projected
cumulative infrastructure spending in
the period 2005-2030 to be $41 trillion.

Booz Allen Hamilton, Global
Infrastructure Partners, World Energy
Outlook, Organization for Economic
Co-operation and Development (OECD)
as referenced in: Infrastructure –
A Global Opportunity; U.S. Funds;

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