Negocio del cobre 2006

September 2006 Vol 34 No 3

Refined production and brand registration by refinery page 2
This issue of Copper Studies is devoted to our annual survey of refined copper brands. The article lists all brands registered on the three main exchanges for terminal stocks – LME, Comex and Shanghai (SHFE) – during the course of 2005. Changes to registrations on all three exchanges during the last yearare highlighted. Finally, the article discusses new brands that have or are likely to gain registration in 2006 and 2007. We estimate that world refined copper output rose by 4.7% or 757,000t in 2005 compared to the previous year. Although the volume of registered copper cathode (LME, Comex and SHFE Premium grade) increased by 3.1% or 383,000t in 2005, its proportion of world output fell slightlyto 72%, compared to the previous year. CRU’s updated annual survey of refined production and brand registration by refinery is based on data taken from our Copper Raw Materials Database, which looks at world refined copper production on a plant-by-plant basis. The survey covers every refinery with a capacity in excess of 1,000t/y, including production of electrorefined copper (ER) and electrowoncopper (EW).

 2006 CRU International Limited confidential

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COPPER STUDIES September 2006

Refined production and brand registration by refinery
Introduction
CRU’s annual survey covers details of cathode brands acceptable for delivery to the London Metal Exchange (LME), the Commodity Exchange part of the New York Mercantile Exchange (Comex)and also the Shanghai Futures Exchange (SHFE). Contracts are for LME Grade A cathode, Comex Grade 1 cathode and SHFE Premium brand only. We make a clear distinction between SHFE Premium and Standard grade contracts. The reason for the distinction is the clear quality difference between LME/Comex and SHFE cathode, given the latter’s acceptance of material with copper content as low as 99.95% versusa minimum of 99.99% for LME/Comex contracts. For this reason we consider only SHFE Premium brand in our comparisons as four out of the five producers of Premium brand are also registered on the LME. Proceeding along this basis we estimate that over 12.1Mt, out of a total world copper production of 16.9Mt in 2005, were certified as registerable on at least one, and in some cases two, of the threerecognised terminal exchanges (LME, Comex and SHFE). The amount of copper accounted for by registered brands increased significantly by 363,000t in 2005, due to the registration of new brands on the Comex exchange, together with increased production by refineries registered on the SHFE.
World refined production listed on exchanges
'000 tonnes 18000 16000 14000 12000 10000 8000 6000 4000 2000 01995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Data: CRU Analysis, LME, NYMEX & SHFE

Tonnage registered on exchanges - LME, Comex and SHFE LME only Comex only LME & SHFE Premium (99.95%) SHFE Premium only (99.95%) LME & Comex Unlisted

Comex brands dominate growth in 2005…
There were three new registrations on Comex during 2005. Codelco’s Radomiro Tomic refinery registered its EWcopper cathode on Comex on July 29th, 2005. Cathode was registered on the LME on October 14th, 2004. Radomiro Tomic commenced operations in late 1997. The planned nameplate capacity of 150,000t/y EW cathode was increased to 190,000t/y prior to start-up. Successive expansions in 2001 and 2002 raised capacity to 310,000t/y. Output in 2005 was an estimated 291,000t. Cathode from Radomiro Tomic isregistered under the RT brand name on both Comex and the LME. In January 2005, both Antofagasta’s El Tesoro refinery and Xstrata’s Tintaya refinery registered their EW copper cathode on Comex. El Tesoro cathode was registered on the LME during August 2003. El Tesoro commenced production in 2001 with an initial capacity of 75,000t/y EW cathode. By 2004, capacity had been increased to 100,000t/y. Output...