Compare The World Steel and Copper Markets: Similarities and Differences

ASSIGNEMENTINTERNATIONALECONOMICS&POLITICS
Subjectarea Globalsteel&coppermarkets
Rawmaterialmarketsanalysis
Commoditiesexchanges
Projectsupervisor Prof.Dr.Jean-DanielClavel
Submittedby AlainMermoud
alain.mermoud@etu.hesge.ch
Date 04.01.10
January
10
Comparetheworldsteelandcoppermarkets:similaritiesanddifferences
AlainMermoudMScBA20104January2010
TableofContents
Executivesummary ................................................................................................ 3
Abbreviations......................................................................................................... 3
1 Introduction ..................................................................................................... 4
2 Parameters&frameworkconditions ................................................................ 4
2.1 History......................................................................................................................................................... 4
2.2 Strategicpositionandmajoreconomicsectors ........................................................................ 4
2.3 Politicalsituationandlegalissues .................................................................................................. 6
2.4 Culturalaspect ......................................................................................................................................... 6
2.5 Environment............................................................................................................................................. 6
2.6 Productionprocess................................................................................................................................ 6
2.7 Productspecificities .............................................................................................................................. 7
3 Analysis ............................................................................................................ 7
3.1 Economicanalysis.................................................................................................................................. 7
3.2 Positionofsteelandcopperininternationaltrade................................................................. 7
3.3 Macroeconomicparameters.............................................................................................................. 8
3.4 Businessstructuresusuallyused .................................................................................................... 8
3.5 Majortradingpartnersoverallworldexports&imports ................................................. 9
3.6 Marketfacts&figures........................................................................................................................ 10
3.7 Extentofinternationalintegration.............................................................................................. 10
4 Potentialoutcomes......................................................................................... 10
5 Personalassessment....................................................................................... 11
6 Prospects........................................................................................................ 11
7 Conclusion...................................................................................................... 12
Bibliography...................................................................................................................................................... 13
Attachments....................................................................................................................................................... 14
Statistics&tables ............................................................................................................................................ 15
3
Executivesummary
Steel is essential for economic growth; as it is primarily used for housing and
construction, infrastructures, transport and energy delivery. Indeed, this metal is the
second most important commodity (15%) after oil. The worldwide steel industry has
notescapedthecurrenteconomicdownturnandrecession.Theindustryhasresponded
rapidly with production cuts, to ensure supply matches demand. The main producer
countries are China, Japan, and the USA. The largest companies are ArcelorMittal,
Nippon Steel and Baosteel Group. Almost 40% of the steel production is exported
internationally.
Copper is a key raw material used worldwide in the industrial development. Its unique
physical and chemical properties (ductility, malleability, conductivity, corrosion
resistant, etc.), make it a superior material for use in constructions (almost 37% of the
market),telecommunications,transportations,etc.Theprincipalsourceofworldcopper
supply is from mine production and recycling (12%). Latin America is the biggest
contributor to mine production at 45%, followed by former Eastern Bloc countries at
19%,Oceaniaat18%andNorthAmericaat12%.
The steel and copper markets face similar issues such as sustainable development
(necessity to reduce CO2 emissions) and the global economic crisis, which reduce
demandandthereforeleadsquicklytoovercapacity.Bothmarketsareoftenconsidered
as being indicators of economic progress, because of their critical role played in
infrastructuresandoveralldevelopment.
Abbreviations
SHME ShanghaiMetalExchange
LME LondonMetalExchange
COMEX/NYMEX CommodityExchangeDivisionoftheNewYorkMercantileExchange
EU EuropeanUnion
GDP GrossDomesticProduct
GNP GrossNationalIncome
OECD OrganizationforEconomicCo-operationandDevelopment
FTA FreeTradeAgreement
LTO Long-TermOrientation
ICSG InternationalCopperStudyGroup
WSA WorldSteelAssociation
GSSA GlobalSteelSectoralApproach
SWOT StrengthWeaknessOpportunitiesThreats
WTO WorldTradeOrganization

4
1 Introduction

The copper and the steel markets shares some characteristics but are also different, in
terms of extraction, use, recycling, supply, etc. The purpose of this study is to expose
bothdifferencesandsimilaritiesofthesetworawmaterials.
Copperandsteelarecloselylinkedwiththeriseofmodernsocieties,andthereforethe
value of the metals grows with the development of emerging countries. Indeed, both
steel and copper are essential for economic growth; as they are primarily used for
infrastructure, transport, energy delivery, housing and construction. Factors such as
mine supply growth, the development of new technologies, the general health of the
economyhaveadirectimpactonthemarketofbothcommodities.
The recent financial crisis has given unique indicators on how the global copper and
steelmarketsreactbothsimilarlyanddifferently-inaperiodofeconomicturbulences
and recession. This assignment also aims to analyze new trends and the general
perspectiveforthecomingyears.
The data and statistics are mainly collected from the OECD, the World steel in figures
2009 from the WSA and the World Copper Factbook 2009 from the ICSG. Regarding
themethodologyoftheresearch,severaltoolsgiveninclassareusedsuchastheSWOT
analyzeorthePortergenericstrategies.
While the two metals are closely linked to the economic and industrial development
worldwide,itiscertainthattheybothwillcontributetothedevelopmentofsocietywell
intothefuture.
2 Parameters&frameworkconditions
2.1 History
Steel is an alloy of iron and carbon. Iron is found on the earths crust, like most metals,
onlyintheformofanore,whichcanstillbefoundinabundancearoundtheglobe.Steel
is already mentioned in the Bible. Evidence of the first production of high carbon steel
was founded in India by about 300 BC. Modern steelmaking started in Europe in the
1600s using coke instead of charcoal. Historically, steel and iron were separate
products, but today they are usually classified in the same entity commonly called the
ironandsteelindustry.Today,strongeralloysandlightermetalshavebeeninvented.
Copperwasoneofthefirstmetalsusedbymankindtomakejewelryandcurrencycoins.
DuringtheRomanera,thismaterialwasmainlyextractedinCyprus,relatingtoCopper's
originalnameofCyprium,"metalofCyprus",latertobecalledCuprumlatetobeknown
as Cuprum. During the Copper Age (3500 to 1700BC.) the material was mainly used to
make tools and weapons. In the 18th and 19th century, the inventions based on
magnetism and electricity involved copper in the Industrial Revolution and gave it a
new impulse in the modern world. Mammals and different organic life forms also use
copper as a vital element of nutrition. Excess and deficiencies can be dangerous to
health.
2.2 Strategicpositionandmajoreconomicsectors
Steel is the basic raw material for economic development. Before the introduction of
modern production techniques, it was considered as expensive and was therefore only
5
used when no cheaper alternative existed (swords, knives, razors). Nowadays steel is
used widely in the construction of roads, buildings, railways and other infrastructures
supportedbyasteelskeleton(airports,bridges,skyscrapers,etc.).
Humans started to use copper (chemical symbol Cu) at least 10,000 years ago and this
material is closely linked with the development of the modern civilization. Even today
copper-basedproductsarestillusedinahugerangeofindustryanddomesticactivities.
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Steel Consumption and Markets
Steel consumption by end-user market in OECD*
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1hc Orcni.ction or |conomic Coopcrction cnd Dcvciopmcnt.
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World steel market by product 2008
Sourcc Worid Stcci /..ociction.
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l|et 54
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Steel consumption by region
Luropeen 0n|on 15
ClS end Other Lurope
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Ch|ne 35
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China 6,937
Japan 1,622
South Korea 768
India 882
ASEAN 892
Taiwan 521
Region. Asia 11,622
North America 3,171
Rest oI World 2,186
Latin America 1,533
Region. All others 6,890
Western Europe 3,984
Eastern Europe 1,451
Region. Europe 5,435
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Major Uses of Copper: Usage by End-Use Sector and Region, 2008
Basis: copper content, thousand metric tonnes
Source: nternational Copper Association

6
2.3 Politicalsituationandlegalissues
Steel industry was delicensed and decontrolled in 1992. However, some actors of the
steel and copper markets are sometimes tempted by protectionism, which can lead to
distorted markets. For instance, in March 2002 the USA placed temporary tariffs on
imported steel, in order to protect steel makers. The EU decided that it would impose
retaliatory tariffs, risking to start a trade war. In 2002, the WTO came out against the
steel tariffs, arguing that they were a violation of the USAs WTO tariff-rate
commitments. This example shows how these two markets are also closely linked to
diplomacy.
2.4 Culturalaspect
Steel and copper will continue to play a key role in the metal industry in the future
years. Indeed, steel and copper-based alloys will still be used in a wide range of
applications of daily life. Plastics and synthetics could eventually replace some steel-
basedproductinthenextyears.
2.5 Environment
Theextractions,transportandproductionofthosetworawmaterialshaveanimpacton
the environment. Efficient use of these natural resources is critical for sustainable
development.CO2emissionsinthesteelsectorareprimarilytheresultofburningfossil
fuelsduringtheproductionofironandsteel.Thatsway,thepost-Kyotonegotiationsare
important for the steel industry, which has an ambitious program for every steel
company in the world to measure its CO2 emissions. Another ecological challenge will
betoreducethehugeconsumptionofelectricityneededforsteelproduction.Otherwise,
steel is one of the most recycled materials in the world. This table shows the recycled
steelconsumptionandapparentdomesticsupplyin2008,inmillionmetrictons.
(source:Worldsteelassociation)
Theprocessofminingcopperresultsinasignificantbyproductofwaterpollution.Acid
drainage is used frequently in the mining of copper and thus harmful atmospheric
emissions of sulphur and heavy metal particles are released into the air during the
refiningandsmeltingprocess.
2.6 Productionprocess
Professionals, like geologists, research for clues that show the presence of copper in
nature. Once the ecological, geological, legal and economic issues are resolved, mining
can start (leaching, surface, or underground mining). Open-pit mining is the method
mainlyusedworldwide.First,thecopper-bearingoreshavetobeextractedandmined.
To obtain 30% of copper concentrate, the ore has to be crushed and grinded, followed
by the concentration by flotation. In the next step, the concentration is boiled to a
distinctsmellinordertoobtaina"matte"with60%copper.Thenextstepprocessesthe
molten matte in a converter, resulting in 99% copper, called blister copper. Recycled
copper is called secondary copper and it cannot be differentiated from primary
worldsteel.org
Recycled steel
Recycled steel is a key input needed for all steelmaking process routes.
Steel is one of the few magnetic metals. It is easy to separate from t
waste streams. About 80% of post-consumer steel is recycled.
1
By sector, steel recovery rates are estimated at 85% for t
construction, 85% for automotive, 90% for machinery, and 50%
for electrical and domestic appliances.
1
Recycled steel supply is
expected to fall short of demand by 2012.
5
Recycled steel (scrap) can be collected from excess material t
in steel facilities and foundries (home scrap) or downstream
production processes (industrial scrap) and from discarded
products (obsolete scrap).
e availability of home and industrial scrap is closely related to t
current domestic steel production levels while the availability of
obsolete scrap is closely related to levels of past steel production,
average product lives and ecient recycling programmes.
EAFs can be charged with 90 to 100% of recycled steel, Basic t
Oxygen Furnaces with up to 30% (see Figure 2).
7
Scrap prices vary greatly for dierent qualities. In 2008 (May-July) t
the price for heavy melting steel scrap (HMS) reached US$520/t
while shredded scrap prices reached US$600/t.
6
Currently, the use of recycled steel appears to be limited only by t
availability and price, not the processing capacity in the worlds
steel mills (see Table 1).
1
Responsible management of natural resources
e steel industry is highly ecient in its use of raw materials with
technology available today. Key contributing factors include high
material eciency rates, by-product recycling and steel recycling.
Steelmaking is nearing zero-waste, with current material eciency
rates at around 97%. e recycling and use of by-products from
steelmaking is up to 98% in some countries.
1
Slag is the main steelmaking by-product; it is mostly used in t
cement production, reducing CO
2
emissions by around 50%.
11

It can also be used in roads (substituting aggregates), as fertiliser
(slag rich in phosphate, silicate, magnesium, lime, manganese
and iron), and in coastal marine blocks to facilitate coral growth
thereby improving the ocean environment.
1
Gases produced during steelmaking are fully reused as an energy t
source either in the blast furnace and reheating furnaces or in
power generation plants within the steelworks, saving fossil fuels.
Coke oven gas contains about 55% hydrogen and may prove an
important hydrogen source in the future.
10
Footnotes
From World Steel Association data or publications (worldsteel.org) 1.
Mineral Information Institute (mii.org) 2.
Analysis of economic indicators of the EU metals industry: the impact of raw materials and energy supply on competitiveness. European 3.
Commission, 2006
Iron Ore, Mineral Commodity Summaries. U.S. Geological Survey, 2007 (minerals.usgs.gov) 4.
EconStatsTM (econstats.com) 5.
Metal Bulletin Research, Steelmaking Raw Materials Monthly Issue 146, July 2008 6.
Coal & Steel Facts 2007. World Coal Institute. worldcoal.org 7.
Steel Industry and the Environment, Technical and Management Issues. IISI and UNEP Technical Report No. 38. 1997. 8.
Metal Bulletin, Issue no. 9042, April 2008. 9.
1he 3tate-of-the-Art Clean 1eohnologies (30AC1) for 3teelmaking andbook." Asia-Paoito Partnership for Clean Uevelopment and Climate, 2007 10.
Legal Status of Slags, Position Paper, January 2006, pages 2 and 10. The European Slag Association (Euroslag). 11.
TABLE 1: RECYCLED STEEL CONSUMPTION AND APPARENT DOMESTIC
SUPPLY 2007, MILLION METRIC TONS (MMT)
1
Recycled steel
consumption
Apparent domestic
supply
EU-27 115.6 117.8
Other Europe 25.3 10.9
CIS 50 58.2
NAFTA 81.3 96.1
Central/South America 14.3 14.4
Asia 189.2 172.8
World 481.9 478.9
FIGURE 2: RECYCLED STEEL USE IN STEELMAKING
Steel recycling
Steel products naturally contribute to resource conservation through
their lightweight potential, durability and recyclability. At the end of
a products life, steels 100% recyclability ensures that the resources
invested in its production are not lost and can be innitely reused.
More steel is recycled worldwide annually than all other materials
put together, with an estimated 459 million metric tons (mmt) being
recycled in 2006, about 37% of the crude steel produced that year.
1

Recycling this steel:
avoided 827mmt of CO t
2
emissions
saved 868 mmt of iron ore, and t
saved the energy equivalent of 242 mmt of anthracite coal. t
1

WORLDSTEEL FACT SHEET
Last updated: October 2008
7
copper.Becauseofthissimilarity,copperisoneofthemostrecycledmetals.Copperis
mainlyshippedtocustomersortobemanufacturedaswirerod,ingot,cathodeorbillet.
Modern steelmaking began with the Bessemer process introduced in 1858, using
directly with pig iron as raw material. This was the first inexpensive industrial process
forthecheapmass-productionofsteelfrommoltenpigiron.Inthe1950s,thistechnique
wasrenderedobsoletebytheLinz-Donawitzprocessofbasicoxygensteelmaking,which
limits impurities. Consequently, this technique uses a lot of electricity (about 440 kWh
permetricton).
2.7 Productspecificities
Key raw material inputs needed in steelmaking include iron ore, coal, limestone, and
recycledsteel.Ironoreisoneofthemostabundantmetallicelements.Coalisalsoakey
material in steel productions. Another major feature is the continuous improvement of
steelgrades.Indeed,50%oftodayssteelgradeswerenotavailabletenyearsago.
Coppercanbealloyedtotinoraluminum(tomakebronzes)orzinc(tomakebrass)to
form new characteristics and to improve its thermal and electric
conductivity. Copper is a natural metal than can easily be found in nature and is easily
recycled without any lost of its physical or chemical properties. Copper is energy and
thermalefficient,meaningheatandelectricitycancirculateincopperwiresmoreeasily
compared to other metals. Thus, copper has antimicrobial properties, which are much
appreciatedinthehealthcarefieldandfortransportingdrinkablewater.
3 Analysis
3.1 Economicanalysis
Because copper and steel are an input in almost all construction projects, the demand
tendstorisewhenthereisaconstructionupturninmainconsumingcountries.Also,ina
periodofaslackdemand(such as the mid-1980s and 1998-2002) there is an excess of
production over final demand, which results in an overload of stock. This abundance
makes these two markets rather different than other perishable commodities. In order
to moderate price fluctuation, the stocks and inventories are built up when demand is
lowandrundownwhenitishigh.
3.2 Positionofsteelandcopperininternationaltrade
Steel and copper are commodities like any other in the global economy, as they are
traded between producers and consumers. Price regulation of iron & steel was
abolished in 1992, since then steel prices are determined by the interplay of market
forces. The producers sell their actual or next production to customers, who transform
themetalsintoalloysorshapes,inordertoallowdownstreamfabricatorstotransform
Steel Production by Process

Crude steel production by process and region 2008
Crude steel production by process 2008
M||||ons o metr|c tonnes lroduct|on 8es|c Oxygen lurnece L|ectr|c ^rc lurnece Open eerth lurnece
Luropeen 0n|on 19B.O 5B.2 41.5 O.3
ClS end Other Lurope 143.B 49.O 32.O 19.O
l^l1^ 123.4 42.2 5.B -
Centre| end South ^mer|ce 4B.3 o1. 3B.3 -
^r|ce 1.O 35.o o4.4 -
M|dd|e Lest 1o.3 12.1 B.9 -
Ch|ne 5O4.4 9O.9 9.1 -
lnd|e 55.2 4O.O 5B.2 1.B
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8
them into several end-use products. The settlement price is important to consider for
the present day (spot price) or for in the future. Copper can be traded over three
commodity exchanges: the SHME (traded in lots of 5 tons and quoted in Renminbi per
ton), the LME (traded in 25 tons lots and quoted in US dollars per ton), and the
COMEX/NYMEX (traded in lots of 25,000 pounds and quoted in US cents per pound).
Pricesaresetbyofferandbid,reflectingthemarketsperceptionofdemandandsupply.
In2008,steelstartedtobetradedasacommodityintheLME.Inordertofixapricein
the future and to provide a hedge against price variations, the exchanges also provide
futuresandoptioncontracts.
The following tables show that the current prices sit between cyclical low and high
prices since 2004 and that the copper market suffered less from the financial crisis in
2009.
3.3 Macroeconomicparameters
The demand of copper and steel boomed in 2004-2005 due to strong Chinese demand
and general economic upturn worldwide. Since 2000, several Indian and Chinese steel
firms entered the market like Shagang Groupe, Shangai Baosteel Groupe, Tata Steel
(which bought Cornus Group in 2007). Arcelormittal is the worlds largest steel
producer.Chinaisthetopproducerorsteelwithabout30%oftheglobalmarket.World
copperreserveshaveincreasedfrom90milliontonsin1950to280milliontonsin1970
and490milliontonsin2007.
3.4 Businessstructuresusuallyused
The mine supply growth, technological, economical and societal factors are related to
the supply and demand of copper. When an area needs more copper, new plants and
mines are built and existing ones expanded. In times of market surplus, the current
operations are scaled back or even closed down, and expansions are delayed or
canceled.
Credit Suisse 2009 Global Steel and Mining Conference 5

60
80
100
120
140
160
180
200
220
1/1/2009 3/1/2009 5/1/2009 7/1/2009
1 January 2009 = 100
Spot iron ore (62% Fe, fob)
Aluminium
Copper
Thermal coal (NEWC)
Source: LME, SBB, Reuters Ecowin
0 100 200 300 400 500
Aluminium
Copper
Thermal
coal
Iron ore *
Index (Low Price=100)
Current Spot
Cyclical High*
Cyclical Low*
* Iron ore CFR China,
prices from Dec 04
Source: SBB, LME, Energy Publishing
Cycle here is defined as the period from January 2004 to Mid 2008. Highs and
lows of monthly prices are taken.
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9
3.5 Majortradingpartnersoverallworldexports&imports
Thefollowingtableshowstheworldsteeltradebyarea
(source:Worldsteelinfigures,WorldSteelAssociation,2009)

24 25
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127.7 4.6 15.9 1.9 2.1 0.6 11.1 0.4 4.8 0.2 169.3 41.6
Other Europe 10.8 0.1 9.3 0.0 0.1 0.0 0.6 0.1 0.3 0.0 21.3 21.3
CIS 1.8 2.6 9.7 0.0 0.5 0.0 1.5 0.1 0.3 0.0 16.6 6.9
NAFTA 6.4 0.2 2.5 16.7 4.4 0.2 4.5 2.6 4.6 0.3 42.4 25.7
Other America 1.3 0.0 1.8 1.3 4.6 0.1 2.0 0.5 0.7 0.0 12.3 7.7
Africa 4.2 0.2 4.7 0.2 0.5 2.2 1.9 0.4 1.1 0.0 15.3 13.2
Middle East 3.7 4.0 12.3 0.2 0.2 2.5 8.6 1.3 4.0 0.0 36.7 34.2
China 1.2 0.0 1.4 0.2 0.0 0.1 - 6.2 8.1 0.0 17.2 17.2
Japan 0.1 0.0 0.0 0.0 0.0 0.0 0.9 - 3.7 0.0 4.8 4.8
Other Asia 4.4 0.0 8.9 1.1 2.1 0.6 34.6 23.6 19.8 0.5 95.5 75.7
Oceania 0.3 0.0 0.0 0.0 0.0 0.0 0.6 0.5 1.0 0.4 2.8 2.5
Total Exports 161.8 11.6 66.4 21.7 14.4 6.4 66.4 35.6 48.5 1.5 434.3 250.7
of which:
extra-regional
exports*
34.1 11.6 56.7 5.0 9.8 1.7 66.4 35.6 28.7 1.1 250.7
Net Exports
(exports - imports)
-7.5 -9.7 49.8 -20.7 2.1 -45.7 49.2 30.9 -47.0 -1.4
* - excluding intra-regional trade marked
WORLD STEEL TRADE BY AREA
2007
million metric tons
MAJOR IMPORTERS AND
EXPORTERS OF STEEL
2007
Rank Total Exports
1 China 66.4
2 Japan 35.6
3 European Union (27)
1
34.1
4 Ukraine 30.3
5 Germany
2
29.9
6 Russia 29.4
7 Belgium - Luxembourg
2
26.6
8 South Korea 18.3
9 France
2
18.2
10 Italy
2
17.9
11 Taiwan, China 11.1
12 Netherlands
2
10.7
13 Brazil 10.4
14 United States 9.8
15 United Kingdom
2
9.5
16 Spain
2
8.0
17 Austria
2
7.0
18 Turkey 6.9
19 Canada 6.8
20 India 6.6
Rank Total Imports
1
41.6
3 Germany
2
27.4
4 South Korea 26.2
5 Italy
2
24.6
2
19.2
7 France
2
18.1
8 China 17.2
9 Spain
2
15.0
10 Turkey 13.5
11 Iran 12.2
12 Thailand 9.8
13 United Kingdom
2
9.3
15 Netherlands
2
8.8
16 Viet Nam 8.5
17 Poland
2
8.0
18 Canada 8.0
19 India 7.7
20 Russia 7.3
Rank Net Exports
(exports - imports)
1 China 49.2
2 Japan 30.9
3 Ukraine 28.1
4 Russia 22.1
5 Brazil 8.8
2
7.4
7 Austria
2
2.8
8 South Africa 2.5
9 Germany
2
2.4
10 Slovakia
2
2.3
11 Netherlands
2
1.9
13 Kazakhstan 1.2
14 Venezuela 0.7
15 Moldova 0.6
Rank Net Imports
(imports - exports)
2 Iran 11.7
3 Viet Nam 8.3
4 South Korea 7.9
1
7.5
6 Spain
2
7.1
7 Thailand 7.0
8 Italy
2
6.7
9 United Arab Emirates 6.6
10 Turkey 6.6
11 Saudi Arabia 4.2
12 Indonesia 4.2
13 Hong Kong, China 3.7
14 Philippines 3.4
15 Poland
2
3.1
1
Excluding intra-regional trade
2
Data for individual European Union (27) countries include intra-European trade
million metric tons
!
"#! $%&'(%)&*+%),!-+..'(!/&012!3(+0.!!!
!
45'!6+(,1!-+..'(!7)8&9++:! ;<<=!
Exporters
Peru
15%
Others
12%
ChiIe
36%
AustraIia
10%
Indonesia
9%
Canada
5%
P
N
G
3
%
BraziI 3%
A
rgentina 3%
M
o
n
g
o
Ii
a
2
%
S
.

A
f
r
i
c
a

2
%
Importers
Japan
23%
China
28%
B
u
I
g
a
r
i
a

3
%
F
i
n
I
a
n
d

3
%
B
r
a
z
i
I

3
%
Others
7%
Korean Rep.
8%
Spain
6%
P
h
iIip
p
in
e
s
3
%
Germany
6%
India
10%
Leading Exporters and Importers of Copper Ores and Concentrates, 2008
Percentage and thousand metric tonnes copper content
Source: CSG

"#$%&!'#'(%)!*+,-. "#$%&!'#'(%)!*+/*0
10
3.6 Marketfacts&figures
Inthelastcentury,thedemandforcopperhasincreasedfrom500thousandmetrictons
toover18millionmetrictonsin2007asdemandoverthisperiodgrewbyanaverageof
4%/year.From1960until2006demandforcopperinAsiajumpedfrom455thousand
metrictonstoaround8000thousandmetricton.Theaverageannualgrowthrateofthe
coppermarketsince1900is4%.Chilehasincreaseditsproductionofcopperfrom14%
in 1960 to 36% in 2006, making South America the biggest producer worldwide. Chile
contains5ofthetop10and8ofthetop20copperminesbycapacityintheworld.
The following table shows the geographical distribution of steel production and use in
2008:
(source:Worldsteelinfigures,WorldSteelAssociation,2009)
Fordetails,pleaserefertotheattachedstatistics&tables.
3.7 Extentofinternationalintegration
New steel futures contracts introduced in 2008 in the LME have filled an information
gap and extend the international integration of the steel market. However, some major
producers have said that industry consolidation is a better way forward than futures
contracts,whichenablethesteelindustrytohedgeagainstvolatilityinsteelprices.
4 Potentialoutcomes
This paper could help an investor looking for opportunities in the steel or copper
market. Based on the information available in this document, he would be able to
compare the two markets and make up his choice for an investment responding to his
needs. The steel market is probably attractive on a short-term basis, due to the new
derivates available on the LME and the particular low prices. The copper market will
probablybelessspeculativeinthenextmonthandwouldprobablybemoreadaptedon
a long-term investment, as copper will stay a key material for future economic
developmentworldwide.
14 15
STEEL PRODUCTION AND USE:
GEOGRAPHICAL DISTRIBUTION
2008
Production
Use (nished steel products)
World total: 1,327 million metric tons crude steel
Others comprise:
Africa 1.3%
Middle East 1.3%
Central and South America 3.7%
Australia and New Zealand 0.6%
Others comprise:
Africa 2.2%
Middle East 3.6%
1998
Others comprise:
Africa 1.6 %
Middle East 1.2 %
CIS
3.5%
Other Europe
2.5%
China
16.0%
NAFTA
21.4%
Japan
10.2%
Other Asia
13.9%
EU (27)
22.7%
Others
9.8%
CIS
4.2%
Other Europe
2.4%
China
35.5%
NAFTA
10.8%
Japan
6.4%
Other Asia
15.2%
EU (27)
15.2%
Others
10.2%
CIS
9.5%
Other Europe
2.2%
China
14.7%
NAFTA
16.6%
Japan
12.0%
Other Asia
11.5%
Others
8.9% EU (27)
24.6%
CIS
8.6%
Other Europe
2.4%
China
37.7%
NAFTA
9.3%
Japan
9.0%
Other Asia
11.2%
EU (27)
14.9%
Others
6.8%
World total: 777 million metric tons crude steel
Production
Central and South America 4.8 %
Australia and New Zealand 1.2 %
Others comprise:
Africa 2.2%
Middle East 2.4%
World total: 692 million metric tons
World total: 1,198 million metric tons
14 15
2008
Production
World total: 1,327 million metric tons crude steel
Others comprise:
Africa 1.3%
Middle East 1.3%
Others comprise:
Africa 2.2%
Middle East 3.6%
1998
Others comprise:
Africa 1.6 %
Middle East 1.2 %
CIS
3.5%
Other Europe
2.5%
China
16.0%
NAFTA
21.4%
Japan
10.2%
Other Asia
13.9%
EU (27)
22.7%
Others
9.8%
CIS
4.2%
Other Europe
2.4%
China
35.5%
NAFTA
10.8%
Japan
6.4%
Other Asia
15.2%
EU (27)
15.2%
Others
10.2%
CIS
9.5%
Other Europe
2.2%
China
14.7%
NAFTA
16.6%
Japan
12.0%
Other Asia
11.5%
Others
8.9% EU (27)
24.6%
CIS
8.6%
Other Europe
2.4%
China
37.7%
NAFTA
9.3%
Japan
9.0%
Other Asia
11.2%
EU (27)
14.9%
Others
6.8%
World total: 777 million metric tons crude steel
Production
Central and South America 4.8 %
Australia and New Zealand 1.2 %
Others comprise:
Africa 2.2%
Middle East 2.4%
World total: 692 million metric tons
World total: 1,198 million metric tons
11
5 Personalassessment
TheSWOTanalysisisanadequateinstrumenttoassessandcomparethetwomarkets
SWOTSTEELMARKET
Strength Opportunities
-Stabilityinsomeemergingeconomies
-StrongCO2emissionsmeasures
-Globalpolicy&perspective(GSSA)
-Export-facilitatingmeasures
-Non-tariffbarriersinemergingAsia
-Modern steelmaking with advanced
technologies
Weakness Threats
- The economic crisis has pushed the
industryintorecession
- Construction sector accounts for half of
worlddemand
- Will demand go down when the stimulus
ends?
- Overcapacity: steelmaking capacity
continuing to increase despite the market
downturns
- Uncertainties regarding public
constructionactivity
SWOTCOPPERMARKET
Strength Opportunities
-Shippingcostsnotanissuenow
-Easilyrecyclable
-Energyefficient(goodconductivity)
-Emergingmarkets
-Economyrecovery
-Healthcare(antimicrobialproperties)
Weakness Threats
-Marketpower/concentration
-Coalusedformining(CO2emissions)
-Watersupplyindryminingdistricts
-Fallingoresgrades(USA,Chile)
- Project finance: high interest rates may
reduceinvestments
-Capitalcostoverruns(USdollarinflation)

6 Prospects
TheglobaltrendintheUEandtheUSAisonconsolidationofindustry.Thefocusisnow
on technological improvement and new products. The Chinese steel industry seems to
be currently staggering, but considering its population of 1.3 billion people; the per
capitasteelconsumptionisbelowthanintheEUortheUSA.Chinahasrecentlybecome
anetexporterofsteel,meaningthatChinaalsoreachedalevelofproductionsaturation
and it steels industry needs to be consolidated and reorganized in coming years rather
thananexpanded.
12
7 Conclusion
The steel and copper markets are often considered as being indicators of economic
progress, because of their critical role played in infrastructures and overall
development.Thevolumeofsteelandcopperconsumedisagoodbarometertomeasure
development and economic progress, as they are both basic raw materials. The intense
use of copper relates to the demand and consumption in economic activity. When less
developed regions expand their infrastructure the price goes up. Indeed, both raw
materialsareinputsintomajorindustriesinmaincountriesworldwide.
Like other markets, which have a perfect competitive structure, there is a homogenous
product and the global price is determined by the supply and demand. In both cases
copper and steel markets are in perfect competition, because there are very large
producersandconsumers.However,inbothcasestheglobalmarketislarge,compared
to the output of even the biggest company (each firm is a price-taker). Thus, both steel
andcoppercanbeproducedinmanypartsoftheglobe.
Bothindustrieshavetofacetheenvironmentalissuesandthesustainabledevelopment
challenge for the coming years. They will also have to face reduction in workforce, as
theywillnotbelabor-intensiveindustryastheyusedtobe.
Summing up, as both markets are closely linked to the economic and industrial
development worldwide, they will benefit from the global economy recover which
should happen in the year 2010. Therefore, they will stay attractive to investors on a
long-term basis and this way it is certain that it will contribute to the development of
societywellintothefuture.
13
Bibliography
Worldsteelinfigures,WorldSteelAssociation,2009,ISSN:1379-9746,27p.
TheWorldCopperFactbook2009,InternationalCopperStudyGroup,2009,67p.
Latribunedesmtaux,Veron&Cie,novembredcembre2009,ESSN1167.4849
SafeSustnainableSteel,ArcelorMittalFactbook2008,publishedinJune2009,126p.
Economics - Eleventh Edition, Lipsey & Chrystal, Oxford University Press 2007, 665 p.,
ISBN978-0-19-928641-6
La Chine influence plus que jamais le march de lacier, Eric Louvet, in Le Temps
31.08.09
Consultedwebsites:
http://www.trademap.org(04.01.10)
http://stats.oecd.org(04.01.10)
http://www.intracen.org(04.01.10)
http://stat.wto.org(04.01.10)
http://www.ft.com(04.01.10)
http://europe.wsj.com(04.01.10)
http://www.letemps.ch(04.01.10)
https://www.cia.gov/library/publications/the-world-factbook(04.01.10)
Contactedreferenceofexpertise:
Mr.EricLouvet,SeniorAdvisorMetals&MiningBNPParibas(Suisse)SA,Geneva.
14
Attachments
Tableofcontent
Annualsteelprices,Europep.15
Copperstocks,pricesandusage..p.15
Apparentsteelusepercapita2002to2008p.16
Intensityofrefinedcopperuse2008p.17
Worldcrudesteelproduction2008inmillionsofmetrictones..p.17
Crudesteelproductionbyprocessandregion2008..p.17
Copperproductionandusagebycountry,2008p.18
Topsteel-producingproducingcompanies2007and2008..p.18
Majorsteel-producingcountries2007and2008..p.18
Top20copperminesbycapacity2009..p.19
Top20copperfabricatingplantsbycapacity2008p.19
15
Statistics&tables
Annual steel prices, Europe*

Steel Prices continucd
Metr|c tonnes 1999 2OOO 2OO1 2OO2 2OO3 2OO4 2OO5 2OOo 2OO 2OOB
ClS S|eb Lxport (0SLJt) 145 14 132 1B3 23 45O 3B 3B2 49B 5o
Chcnc yccr,yccr -12 20 -24 39 29 90 -16 1 30 52
ClS 8|||et Lxport (0SLJt) 155 1o2 144 1o5 215 345 33 3B1 4B9 45
Chcnc yccr,yccr -16 4 -11 15 31 60 -2 13 2B 52
lC Cermen Lomest|c (L0lJt) 23o 31 25B 2o 3O9 443 45O 4o4 4BB o3O
lC Cermen Lomest|c (0SLJt) 251 293 231 2o1 35O 551 5o1 5B3 oo9 92
Chcnc yccr,yccr -1 1 -21 13 34 5B 2 4 15 39
ClC Cermen Lomest|c (L0lJt) 314 435 349 3o 39 52B 552 5o1 55B oBO
ClC Cermen Lomest|c (0SLJt) 334 4O2 312 34 45O o5 oBB O5 o5 1,OO1
Chcnc yccr,yccr -1 20 -22 11 30 46 5 2 9 31
LC Cermen Lomest|c (L0lJt) 35 42 3o2 34 414 53B 55B o42 o5o 2o
LC Cermen Lomest|c (0SLJt) 399 43o 324 355 4oB oO o9 BO9 9OO 1,Oo
Chcnc yccr,yccr -23 9 -26 10 32 43 4 16 11 19
l|ete Cermen Lomest|c (L0lJt) 22 34 3B1 3o2 39o 493 o19 o49 43 B39
l|ete Cermen Lomest|c (0SLJt) 2B9 319 341 343 449 o13 O B1o 1,O1B 1,234
Chcnc yccr,yccr -2 10 1 31 3 26 6 25 21
W|re rod Cermen Lomest|c (L0lJt) 224 254 245 2o4 292 435 3B 424 45 o21
W|re rod Cermen Lomest|c (0SLJt) 23B 235 22O 25O 331 54O 42 534 o2 913
Chcnc yccr,yccr -10 -1 - 14 32 63 -13 13 1 46
Merchent bers Cermen Lomest|c (L0lJt) 2o2 2Bo 293 3OB 333 393 414 524 5B 32
Merchent bers Cermen Lomest|c (0SLJt) 29 2o4 2o3 291 3 4B9 515 o59 92 1,O
Chcnc yccr,yccr -11 -5 -1 11 30 30 5 2B 20 36
Sect|ons Cermen Lomest|c (L0lJt) 2B4 315 31O 31B 35O 495 5O9 552 o5B B1B
Sect|ons Cermen Lomest|c (0SLJt) 3O2 291 2B 3O1 39 o1o o34 o94 9O2 1,2O3
Chcnc yccr,yccr -14 -4 -4 B 32 55 3 9 30 33
Sourcc CRU, 1|X rcport, Mctci Buiictin cnd /rcciorMittci ctimctc.
Currcncy convcrion bccd on cvcrcc cxchcnc rctc.
!
"#! $%&'(%)&*+%),!-+..'(!/&012!3(+0.!!!
!
45'!6+(,1!-+..'(!7)8&9++:! ;<<=!
Copper Stocks, Prices and Usage
Thousand metric tonnes copper and US cents/pound
Source: CSG

0
75
150
225
300
375
450
525
600
675
750
825
900
975
1,050
1,125
1,200
1,275
1,350
1,425
1,500
1,575
1,650
1,725
1,800
1,875
1,950
2,025
2,100
2,175
2,250
2,325
2,400
2,475
2,550
2,625
2,700
2,775
2,850
2,925
3,000
Jan 00 Jul 00 Jan 01 Jul 01 Jan 02 Jul 02 Jan 03 Jul 03 Jan 04 Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul-07 Jan 08 Jul-08 Jan 09
T
h
o
u
s
a
n
d

m
e
t
r
i
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t
o
n
n
e
s
,

c
o
p
p
e
r
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
270
280
290
300
310
320
330
340
350
360
370
380
390
400
P
r
i
c
e

L
M
E

(
U
S

c
e
n
t
s
/
p
o
u
n
d
)
Exchanges Producers
Merchants Consumers
Price LME (UScents/pound) 3 mth moving average copper usage seasonally adjusted
16
16 17
APPARENT STEEL USE PER CAPITA
2002 TO 2008
kilograms nished steel products
APPARENT STEEL USE
2002 TO 2008
2002 2003 2004 2005 2006 2007 2008
Austria 3.1 3.1 3.3 3.5 4.1 4.1 4.0
Belgium - Luxembourg 4.5 4.0 4.8 4.6 5.5 5.8 5.6
Czech Republic 4.2 4.4 5.2 5.2 6.0 6.6 6.5
France 17.2 15.6 16.7 14.8 16.2 16.6 15.3
Germany 31.6 31.9 36.3 35.3 39.2 42.7 41.5
Italy 29.5 31.8 33.2 31.6 36.6 36.6 34.3
Netherlands 4.0 3.4 3.5 3.6 3.5 3.5 3.2
Poland 7.7 7.3 8.5 8.4 10.7 12.1 11.4
Romania 2.8 3.1 3.3 3.5 4.2 5.1 4.3
Spain 19.7 21.0 21.1 20.9 23.6 24.5 19.6
Sweden 3.3 3.6 4.0 4.1 4.5 4.8 4.9
United Kingdom 12.6 12.3 13.2 11.4 12.9 12.7 11.7
Other EU (27) 18.5 18.5 19.5 18.6 21.7 23.0 20.0
European Union (27) 158.7 160.1 172.4 165.5 188.6 198.1 182.1
Turkey 12.3 14.6 16.2 18.5 21.3 23.6 21.3
Others 5.3 5.3 6.4 6.6 7.7 8.0 7.6
Other Europe 17.5 19.9 22.6 25.1 28.9 31.6 28.9
Russia 24.9 25.3 26.3 29.3 34.9 40.4 35.4
Ukraine 5.5 6.4 5.8 5.6 6.7 8.3 6.9
Other CIS 3.5 0.7 0.8 0.8 1.0 1.3 1.3
CIS 34.0 37.0 38.1 41.5 48.9 56.6 49.9
Canada 15.9 15.5 17.4 16.8 18.1 15.5 15.0
Mexico 14.3 14.9 16.0 16.1 18.0 17.8 17.3
United States 107.3 100.8 117.4 105.4 119.6 108.0 97.5
NAFTA 137.5 131.3 150.8 138.3 155.7 141.3 129.7
Argentina 1.7 2.8 3.6 3.7 4.5 4.6 4.8
Brazil 16.5 16.0 18.3 16.8 18.5 22.1 24.0
Venezuela 1.6 1.5 2.4 2.7 3.1 4.0 3.3
Others 7.7 7.1 8.6 9.1 10.1 11.0 12.1
Central and South America 27.7 27.6 33.0 32.5 36.4 41.9 44.4
Egypt 5.5 4.2 3.8 5.0 4.6 5.5 6.5
South Africa 4.9 4.1 4.9 4.7 6.0 6.0 6.1
Other Africa 8.7 10.0 11.1 11.9 12.2 13.6 13.5
Africa 19.1 18.3 19.9 21.5 22.9 25.1 26.2
Iran 11.3 14.7 14.5 15.6 14.6 16.1 15.6
Other Middle East 12.9 14.2 15.2 17.9 20.3 24.2 27.5
Middle East 24.1 28.9 29.8 33.5 34.9 40.3 43.1
China 191.3 240.5 275.8 340.2 369.8 413.7 425.7
India 30.7 33.1 35.3 39.9 45.6 49.5 52.6
Japan 71.7 73.4 76.8 76.7 77.3 79.6 76.4
South Korea 43.7 45.4 47.2 47.1 50.2 55.2 58.6
Taiwan, China 20.4 19.9 22.1 19.9 19.8 18.1 16.7
Other Asia 41.6 41.9 45.8 50.2 47.4 55.2 54.6
Asia 399.4 454.2 503.0 574.1 610.1 671.3 684.6
Australia and New Zealand 7.2 7.5 8.0 7.9 7.9 8.6 9.2
World 825.2 884.7 977.6 1,040.0 1,134.4 1,214.8 1,198.1
2002 2003 2004 2005 2006 2007 2008
Austria 384.0 382.1 399.6 419.4 492.9 495.7 472.2
Belgium - Luxembourg 417.9 375.1 440.3 423.6 505.1 530.6 510.6
Czech Republic 409.6 432.7 508.1 513.7 585.9 644.6 639.3
France 287.7 259.2 275.5 243.4 263.5 269.6 247.4
Germany 383.4 386.6 438.8 426.6 474.6 517.2 502.4
Italy 507.6 545.7 567.8 538.8 622.7 621.6 582.0
Netherlands 246.8 210.3 216.7 221.9 215.0 211.5 191.5
Poland 200.7 190.6 221.4 219.2 279.5 316.5 299.6
Romania 129.5 141.1 149.6 161.8 195.1 235.5 200.4
Spain 475.7 497.8 493.3 481.8 538.6 552.6 440.5
Sweden 366.0 398.0 444.3 453.8 492.2 531.6 532.2
United Kingdom 212.0 206.3 219.7 189.4 212.4 209.1 191.4
Other EU (27) 265.6 265.5 279.4 265.6 309.7 328.2 284.6
European Union (27) 327.0 328.6 352.8 337.5 383.5 401.9 368.9
Turkey 174.8 205.3 224.7 254.1 287.8 314.6 281.2
Others 140.3 141.3 170.1 174.1 203.3 214.3 202.4
Other Europe 163.0 183.6 206.4 227.4 259.8 281.6 255.4
Russia 170.6 174.2 181.7 203.2 243.8 283.4 249.6
Ukraine 115.5 134.7 121.9 118.5 144.3 179.7 151.2
Other CIS 51.8 27.8 31.1 30.4 37.7 47.4 47.6
CIS 129.9 141.9 146.7 160.2 189.2 219.6 194.2
Canada 508.0 490.4 543.9 521.9 556.1 471.7 451.5
Mexico 140.5 145.7 155.0 154.0 171.1 167.3 160.2
United States 368.8 343.2 395.4 351.4 394.9 353.1 315.6
NAFTA 324.3 306.8 348.9 316.9 353.4 317.4 288.4
Argentina 46.4 74.8 93.3 95.5 114.7 116.9 119.9
Brazil 92.0 87.8 99.4 90.0 97.9 115.2 123.6
Venezuela 63.4 57.3 91.3 101.0 113.8 143.9 118.3
Others 46.5 42.5 50.4 52.8 58.2 62.4 67.4
Central and South America 66.5 65.3 77.2 74.8 82.9 94.1 98.4
Egypt 80.2 59.5 53.7 68.2 62.1 72.4 85.1
South Africa 104.6 87.3 104.0 97.6 125.0 123.3 124.7
Other Africa 14.9 17.7 18.1 19.9 19.7 21.8 20.9
Africa 29.7 28.1 28.9 31.5 32.7 35.3 36.0
Iran 167.1 216.1 211.5 225.4 208.5 226.1 216.0
Other Middle East 153.8 165.3 172.5 197.1 217.9 253.9 280.7
Middle East 159.7 187.7 189.6 209.3 213.8 242.0 253.3
China 148.5 185.4 211.4 259.1 280.0 311.4 318.5
India 28.4 30.1 31.6 35.2 39.6 42.4 44.3
Japan 562.4 575.2 600.9 599.9 604.4 622.0 597.2
South Korea 924.6 955.4 990.3 984.4 1 044.2 1 144.8 1 210.4
Taiwan, China 907.4 878.4 969.3 869.7 860.4 780.1 717.8
Other Asia 48.4 48.0 51.8 56.0 52.0 59.7 58.3
Asia 116.6 131.0 143.5 162.0 170.3 185.4 187.1
Australia and New Zealand 298.1 308.3 327.0 321.2 315.8 340.7 359.3
World 140.0 148.4 162.1 170.7 184.1 195.1 190.4
million metric tons nished steel products
17

31! lnLernaLlonal Copper SLudy Croup

1he World Copper lacLbook 2009
Africa
China
EU-27
Japan
Latin America (ex Mexico)
MiddIe East
North America
Oceania
Russian Fed.
ASEAN-5
India
United States
0
1
2
3
4
5
6
7
8
9
10
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
GDP per Capita (2008 US$/person)
R
e
f
i
n
e
d

C
o
p
p
e
r

U
s
a
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e

p
e
r

C
a
p
i
t
a

(
k
g
/
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s
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)

Intensity of Refined Copper Use, 2008
1

Sources: CSG, nternational Monetary Fund, U.S. Census Bureau

1
noLe: 8eflned copper ls consumed by semls fabrlcaLors or Lhe flrsL users" of reflned copper, lncludlng lngoL makers, masLer alloy planLs, wlre rod planLs, brass mllls, alloy
wlre mllls, foundrles and foll mllls. As a resulL, per caplLa consumpLlon of reflned copper refers Lo Lhe amounL of copper consumed by lndusLry dlvlded by Lhe LoLal domesLlc
populaLlon and does noL represenL consumpLlon of copper ln flnlshed producLs per person.
World crude steel production 2008 in millions of metric tonnes
Steel Production by Process

Crude steel production by process and region 2008
Crude steel production by process 2008
M||||ons o metr|c tonnes lroduct|on 8es|c Oxygen lurnece L|ectr|c ^rc lurnece Open eerth lurnece
Luropeen 0n|on 19B.O 5B.2 41.5 O.3
ClS end Other Lurope 143.B 49.O 32.O 19.O
l^l1^ 123.4 42.2 5.B -
Centre| end South ^mer|ce 4B.3 o1. 3B.3 -
^r|ce 1.O 35.o o4.4 -
M|dd|e Lest 1o.3 12.1 B.9 -
Ch|ne 5O4.4 9O.9 9.1 -
lnd|e 55.2 4O.O 5B.2 1.B
Jepen 11B. 5.2 24.B -
lest o ^s|e 93.O 43.3 5o. -
Oceen|e B.4 9.B 2O.2 -
ruog
1
2
3
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L|ectr|c ^rc lurnece 31
Open eerth lurnece 2
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Mine
Production
Refined
Production
Refined
Usage
Mine
Production
Refined
Production
Refined
Usage
Mine
Production
Refined
Production
Refined
Usage
Argentina 157 16 30 Iran 248 201 135 PoIand 429 527 247
AustraIia 883 502 151 ItaIy 24 635 PortugaI 89 2
Austria 107 33 Japan 1,540 1,184 Romania 5 15 36
BeIgium 396 285 Kazakhstan 420 398 56 Russian Fed. 705 862 650
Botswana 29 Korea, North 12 15 15 Saudi Arabia 1 192
BraziI 212 223 375 Korea, South 531 780 Serbia 19 34 37
BuIgaria 105 127 59 Laos 89 64 South Africa 109 93 86
Canada 607 442 197 MaIaysia 177 Spain 7 319 385
ChiIe 5,328 3,058 103 Mauritania 33 Sweden 57 228 170
China 951 3,791 5,198 Mexico 247 295 325 Taiwan (China) 582
CoIombia 1 10 10 MongoIia 129 3 Tanzania 4
Congo, Dem Rep 214 64 Morocco 5 ThaiIand 0 240
Czech RepubIic 6 Myanmar 0 0 Turkey 83 88 360
Egypt 4 170 Namibia 9 Ukraine 20 20
FinIand 13 131 67 NetherIands 22 United Arab Emirates 36
France 410 Norway 37 United Kingdom 54
Germany 690 1,398 Oman 20 25 15 United States 1,335 1,282 2,020
Greece 75 Pakistan 20 41 Uzbekistan 80 90 48
Hungary 8 Papua New Guinea 160 Vietnam 11 2 102
India 28 662 520 Peru 1,268 464 55 Zambia 547 417 29
Indonesia 651 254 195 PhiIippines 21 175 39 Zimbabwe 3 7 10
Copper Production and Usage by Country, 2008
Thousand metric tonnes
Source: CSG

8 9
MAJOR STEEL-PRODUCING COUNTRIES
2007 AND 2008
million metric tons crude steel production
Country 2008 2007
China 1 500.5 1 494.9
Japan 2 118.7 2 120.2
United States 3 91.4 3 98.1
Russia 4 68.5 4 72.4
India (e) 5 55.2 5 53.1
South Korea 6 53.6 6 51.5
Germany 7 45.8 7 48.6
Ukraine 8 37.1 8 42.8
Brazil 9 33.7 9 33.8
Italy 10 30.6 10 31.6
Turkey 11 26.8 11 25.8
Taiwan, China 12 19.9 12 20.9
Spain 13 18.6 14 19.0
France 14 17.9 13 19.2
Mexico 15 17.2 15 17.6
Canada 16 14.8 16 15.6
United Kingdom 17 13.5 17 14.3
Belgium 18 10.7 18 10.7
Iran 19 10.0 20 10.1
Poland 20 9.7 19 10.6
South Africa 21 8.3 21 9.1
Australia 22 7.6 22 7.9
Austria 23 7.6 23 7.6
Netherlands 24 6.9 24 7.4
Czech Republic 25 6.4 25 7.1
Egypt 26 6.2 28 6.2
Malaysia (e) 27 6.1 26 6.9
Argentina 28 5.5 31 5.4
Thailand (e) 29 5.5 30 5.6
Sweden 30 5.2 29 5.7
Romania 31 5.0 27 6.3
Saudi Arabia 32 4.7 35 4.6
Slovak Republic 33 4.5 32 5.1
Finland 34 4.4 36 4.4
Kazakhstan 35 4.3 34 4.8
Venezuela 36 4.2 33 5.0
Indonesia (e) 37 3.6 37 4.0
Luxembourg 38 2.6 38 2.9
Byelorussia 39 2.6 40 2.4
Greece 40 2.5 39 2.6
Viet Nam (e) 41 2.2 42 2.0
Hungary 42 2.1 41 2.2
Others 24.3 24.3
World 1,326.5 1,351.3
(e): estimate
TOP STEEL-PRODUCING COMPANIES
2007 AND 2008
million metric tons crude steel production
2008 2007 2008 2007
1 103.3 1 116.4 ArcelorMittal 41 6.9 40 7.4 Jiuquan Steel
2 37.5 2 35.7 Nippon Steel
1
42 6.9 41 7.3 Salzgitter
5
3 35.4 5 28.6 Baosteel Group 43 6.8 43 6.9 voestalpine
4 34.7 4 31.1 POSCO 44 6.5 39 7.8 Jianlong Group
5 33.3 NA 31.1 Hebei Steel Group 45 6.5 44 6.8 BlueScope
6 33.0 3 34.0 JFE 46 6.4 46 6.4 Metalloinvest
7 27.7 11 20.2 Wuhan Steel Group 47 6.4 47 6.4 Beitei Steel
8 24.4 6 26.5 Tata Steel
2
48 6.1 60 5.2 Guofeng Steel
9 23.3 8 22.9 Jiangsu Shagang Group 49 6.1 51 6.1 SSAB
10 23.2 10 21.5 U.S. Steel 50 6.0 58 5.4 Erdemir
11 21.8 NA 23.8 Shandong Steel Group 51 5.9 54 5.9 AK Steel
12 20.4 12 20.0 Nucor 52 5.9 52 6.1 Mechel
13 20.4 13 18.6 Gerdau 53 5.7 53 6.0 Nanjing Steel
14 19.2 15 17.3 Severstal 54 5.6 42 7.0 Ilyich
15 17.7 17 16.2 Evraz 55 5.4 61 5.0 Tonghua Steel
16 16.9 14 17.9 Riva 56 5.3 56 5.6 Xinyu Steel
17 16.0 NA 16.2 Anshan Steel 57 5.2 57 5.5 HKM
6
18 15.9 16 17.0 ThyssenKrupp
3
58 5.1 NA 4.5 Sanming Steel
19 15.0 18 14.2 Maanshan Steel 59 5.0 59 5.3 CSN
20 14.1 20 13.8 Sumitomo Metal Ind 60 4.7 63 4.6 HADEED
21 13.7 19 13.9 SAIL 61 4.5 68 4.4 Tianjin Tiantie Group
22 12.2 23 12.9 Shougang Group 62 4.4 72 4.0 Hebei Jinxi Group
23 12.0 21 13.3 Magnitogorsk 63 4.3 62 5.0 Steel Dynamics
24 11.3 30 9.7 Novolipetsk 64 4.3 69 4.1 Pingxiang Steel
25 11.3 26 11.1 Hunan Valin Group 65 4.3 65 4.5 Ezz Group
26 11.0 27 10.9 China Steel Corporation 66 4.0 71 4.1 Nisshin
27 10.4 22 13.1 Techint
4
67 4.0 70 4.1 Tianjin Steel Pipe
28 10.0 28 10.1 IMIDRO 68 3.9 64 4.6 Zaporizhstahl
29 9.9 NA 11.6
Industrial Union
of Donbass
69 3.8 NA 3.0 JSW Steel
30 9.9 29 10.0 Hyundai Steel 70 3.7 73 4.0 Lion Group
31 9.8 34 8.8 Baotou Steel 71 3.7 75 3.5 AHMSA
32 9.2 31 9.3 Taiyuan Steel 72 3.7 NA 3.0 ICDAS
33 9.0 33 9.0 Anyang Steel 73 3.6 NA 4.3 SIDOR
6
34 8.2 32 9.1 Metinvest 74 3.6 78 3.5 Hangzhou Steel
35 8.2 37 8.1 Celsa 75 3.5 NA 2.7 Hebei Jingye Steel
36 8.1 38 8.1 Kobe Steel 76 3.5 77 3.5 Chongqing Steel
37 8.0 35 8.7 Usiminas 77 3.4 NA 2.7 Commercial Metals
38 7.5 45 6.6 Panzhihua Steel 78 3.4 74 3.6 Essar Steel
39 7.5 50 6.2 Rizhao Steel 79 3.4 79 3.5 Tokyo Steel
40 7.4 NA 7.6 Benxi Steel 80 3.1 NA 3.2 Vizag Steel
(1) - includes part of Usiminas
(2) - includes Corus
(3) - 50% of HKM included in ThyssenKrupp
(4) - includes partial tonnage of SIDOR
(5) - includes part of HKM
(6) - total production
NA: not applicable
19
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Rank Mine Country Owner(s) Source Capacity
1 Escondida Chile BHP Billiton (57.5%), Rio Tinto Corp. (30%), Japan Escondida (10%), FC
(2.5%)
Concs & SX-EW 1,330
2 Codelco Norte Chile Codelco Concs & SX-EW 900
3 Grasberg ndonesia P.T. Freeport ndonesia Co. (PT-F), Rio Tinto Concentrates 750
4 Collahuasi Chile Anglo American (44%), Xstrata plc (44%), Mitsui + Nippon (12%) Concs & SX-EW 498
5 El Teniente Chile Codelco Chile Concentrates 440
6 Taimyr Peninsula (Norilsk/
Talnakh Mills)
Russia Norilsk Nickel Concentrates 430
7 Antamina Peru BHP Billiton (33.75%), Teck (22.5%), Xstrata plc (33.75%), Mitsubishi (10%) Concentrates 420
8 Morenci United States Freeport-McMoRan Copper & Gold nc./Sumitomo SX-EW 400
9 Los Pelambres Chile Antofagasta Holdings (60%), Nippon Mining (25%), Mitsubishi Materials
(15%)
Concentrates 360
10 Bingham Canyon United States Kennecott Concentrates 280
10 Batu Hijau ndonesia PT Pukuafu ndah (20%), Newmont (45%), Sumitomo Corp. (27.5%),
Sumitomo Metal Mining (5%), Mitsubishi Materials (2.5%)
Concentrates 280
12 Kansanshi Zambia First Quantum Minerals Ltd (80%), ZCCM (20%) Concs & SX-EW 270
13 Andina Chile Codelco Chile Concentrates 250
14 Zhezkazgan Complex Kazakhstan Kazakhmys (Samsung) Concentrates 230
15 Los Bronces Chile Anglo American (100%) Concs & SX-EW 228
16 Olympic Dam Australia BHP Billiton Concs & SX-EW 225
17 Rudna Poland KGHM Polska Miedz S.A. Concentrates 220
18 Cananea Mexico Grupo Mexico Concs & SX-EW 210
19 Sarcheshmeh ran National ranian Copper ndustry Co. Concs & SX-EW 204
20 Bajo de la Alumbrera Argentina Xstrata plc 50%, Goldcorp nc 37.5%, Yamana Gold 12.5% Concentrates 200
Top 20 Copper Mines by Capacity, 2009
Source: CSG

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Rank Owners PIant Country PIant Type Capacity
1 Wieland Werke (Wieland Metals) Vhringen Germany Brass mill 360
2 Freeport McMoRan Copper & Gold nc. El Paso, TX USA Wire rod plant 355
2 Freeport McMoRan Copper & Gold nc. Norwich, CT USA Wire rod plant 355
4 Conticon (Condumex - Grupo Carso) Celaya Mexico Wire rod plant 318
5 Southwire Carollton, GA USA Wire rod plant 310
6 Jinagsu Jinhui Copper Group Jinagsu Jinhui Copper Group China Wire rod plant 300
6 Nanjing Walsin Wire & Cable Nanjing China Wire rod plant 300
6 SCCC - Societe de Coulee Continue de Cuivre (Nexans) Chauny France Wire rod plant 300
6 Trafilierie Carlo Gnutti Chiari, Brescia taly Brass mill 300
10 Hitachi Wire Rod (Hitachi Cable 70%; Pan Pacific 20%) baraki-Ken Japan Wire rod plant 280
10 Cumerio (Aurubis) Olen (Plant 1) Belgium Wire rod plant 280
12 Aurubis Hamburg Germany Wire rod plant 275
13 Asarco (Grupo Mexico) Amarillo, TX USA Wire rod plant 270
13 LS Cable Gumi Korea Wire rod plant 270
15 Katur-nvest (Uralelektromed) Verkhnaya Pyshma Russia Wire rod plant 265
16 Nexans Canada nc. (Nexans 100%) Montreal Canada Wire rod plant 260
17 Nanjin Walsin Nanjin Walsin China Wire rod plant 250
17 Taihan Electric Wire Anyang Korea Wire rod plant 250
19 Deutsche Giessdraht (Aurubis 60%, Codelco 40%) Emmerich Germany Wire rod plant 250
19 MKM Mansfelder Kupfer & Messing (Kazakhmys) Hettstedt Germany Brass mill 250
Top 20 Copper Fabricating PIants by Capacity, 2008
Source: CSG

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