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Discussing Copper Issue 2011-2012

in Lisbon, Portugal, discussing Copper Issue 2011-2012, ICSG predicts that global smooth copper production would increase by 380,000 tons this year from 2010 when the deficit was 250,000 tons. The rising production is driven by the high price of copper and growing demand from end-users. It is also driven by the demand from industry, which continues to grow in 2011.

At the event attended by copper producers and users, the production of copper is expected to grow six percent in 2011, compared to 4.3% in 2010.

However, the forum is also realistic so that the target of the production is revised again in view of global uncertainties. ICSG observes factors so that the target needs revision. Among them are earthquake and Tsunami in Japan, political uncertainties in the Middle East and Africa, changes in financial policies and uncertain copper market dominated by China.

Finally, in view of the conditions, ICSG predicts that copper production would increase by 3.5% to 19.7 million in 2011 and the conditions are expected to change so that the production could grow by five percent in 2012.

Consumption of smooth copper is predicted to increase by four percent from last year to 20,000 tons. The consumption is expected to grow above four percent in 2012 following the improvement of global economic condition.