Japanese Copper Usage May Not Reach 1MT in 2011, Says Mr. Kemori

Chairperson of Japan Mining Industry Association and president of Sumitomo Metal Mining Nobumasa Kemori, attended a regular press conference in Tokyo on September 22 and indicated Japanese electrolytic copper consumption might not reach 1 million tonnes in 2011. The demand has slowed down in the second half year for electric wires and cables adopted to constructions or copper alloy fabricated products consumed in semiconductor industry.At overseas, electrolytic copper market price hit the yearly bottom at below US$ 8,400 per tonne as of September 21. Mr. Kemori analyzed the market price is expected to rebound in a short time since the price dropped due to speculative sales based on a concern for world economic trend change. He said copper consumption would increase along economic growth in China and India.Meanwhile, Mr. Kemori referred to Peruvian new tax policy on resources under consideration and showed a concern the policy would impact profits of the companies those who hold shares in Peruvian mines. He said Peruvian government shouldn’t change the terms of the tax policy if the details are once fixed. The frequent policy changes might disturb planning of mine development and expansion projects.As for Japanese governmental act on special measures to encourage the enterprises’ procurement of renewable energy, Mr. Kemori insisted the burdens should be reduced not only for zinc and ferronickel producers those who consume large electricity but for nonferrous metal industry as total. He explained high competitiveness should be guaranteed for base metal suppliers in order to keep stable material supply to other industries.