This is marketing research on the Copper industry and can include information on the background, market structure, definitions, competitors, trends and developments of copper and is related to other topics such as minerals, ores, metals and mining.

Table of Contents

Table of Contents

1 Background 
2 Market Structure 
3 Market Metrics 
4 Industry Players 
5 Recent Trends and Developments 
6 Sources

Background

In 1998, copper mine production reversed a 15-year upward trend, declining about 80,000 tons (4 percent) as capacity utilization fell to 90 percent, the lowest level since 1995. The five principal mining states in descending order — Arizona, Utah, New Mexico, Nevada, and Montana — accounted for 98 percent of domestic production; copper also was recovered at mines in five other states. The trend downwards changed early in the decade as the demand for commodities in general surged upwards (see revenue figures below).

Although copper was recovered at about 38 U.S. mines, 15 mines accounted for about 97 percent of the output. Mine production was processed at seven primary and three secondary smelters, seven electrolytic and four fire refineries, and 15 other operations. Approximately 35 brass mills, 15 wire-rod mills, and 600 foundries, chemical plants, and miscellaneous plants consumed refined copper and/or copper base scrap.

The principal markets for copper and copper alloy products were building construction (42 percent), electric and electronic products (25 percent), industrial machinery and equipment (11 percent), transportation equipment, (13 percent), and consumer and general products (9 percent). U.S. net imports of refined copper, principally from Canada, Chile, and Mexico, amounted to about 600,000 tons, or, adjusting for stock increases, 15 percent of the demand for refined copper.

Market Structure

In recent government data, the number of establishments engaged in copper mining had decreased in the period leading up to 2002. It is anticipated that this number had ticked upwards, however, by mid-decade.

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Employment at the nation's copper mines had dropped sharply from the 1980s and '90s. That trend continued into the new century per the government statistics earlier in the decade.

Market Metrics

As indicated above, demand for commodities has surged in the past few years. Copper is an increasingly key commodity in global production and demand in emerging market economies has risen dramatically. The latest figures for 2005 below were carried higher in 2006 and 2007.

Industry Players

These are major players in this market, but it is not an exhaustive list of all key firms.

Revenues, Net Income and Market Capitalization are expressed in US$ Millions.

Recent Trends and Developments

World mine production of copper rose significantly for the fourth consecutive year, increasing by about 600,000 tons (5 percent) in the late 1990s to 12.2 Million tons. Most of the increase in production came from Chile and Indonesia, where production rose 300,000 tons and 260,000 tons, respectively. World refined copper production rose about 500,000 tons (4 percent) to 13.4 Mt and continued to outstrip world demand for refined copper.

Reported world inventories rose about 340,000 tons, accumulating mostly in London Metal Exchange (LME) warehouses in the United States. Domestic inventories rose to 500,000 tons, the highest level since 1985, amid industry concerns about warehouse incentives that resulted in the eventual intervention to limit further accumulations.

On the basis of announced cutbacks, irrespective of the impact of the pending mergers, U.S. copper mine production is expected to decline by about 180,000 tons in 1999 and a further 200,000 tons in 2000, while refinery production is expected to decline by as much as 280,000 tons and 350,000 tons, respectively. The United States is expected to relinquish to Chile its position as the largest world producer of refined copper. Consumption of refined copper was expected to grow, and domestic import dependence for refined copper is expected to grow significantly. The price of copper as with all commodities has shot up since 2000 and production is dramatically higher in 2007.

Sources

• Most current US government sources