U.S. Copper Usage Declines in 2005

June 8, 2006

FOR IMMEDIATE RELEASE

NEW YORK, NY— Following an upturn in 2004, U.S. copper usage dropped to 7,471 million pounds in 2005. The 2005 level is a 6.2% decrease from the 2004's 7,962 million pounds. Exports of mill products in 2005 rose for the second year in a row, up 8.0% to 895 million pounds. Imports, at 1,169 million pounds, were nearly constant, edging downward 0.3% from 2004.

U.S. copper mine production dropped by 2.6% to 2,514 million pounds from the 2004 level of 2,580 million pounds, according to "Annual Data 2006 - Copper Supply and Consumption, 1985-2005," published this month by the Copper Development Association Inc. The report covers the industry's vital statistics from mine to end-use market over the past two decades and may be viewed at www.copper.org under Market Data.

Electrowon copper production was down 5.0% at 1,224 million pounds, and smelter production at 1,154 million pounds declined 3.4%. Total production of refined copper at 2,770 million pounds dipped 3.8% from 2004 levels, and consumption of refined copper at 5,004 million pounds was down 5.8%. The direct consumption of scrap was down marginally by 0.9% at 2,014 million pounds.

Building construction (3,678 million pounds) continued to be the largest end-use market for copper products, accounting for nearly half, 49.2%, of total U.S. usage. Electrical and electronic products (1,526 million pounds) accounted for 20.4% of total usage; transportation equipment (803 million pounds), 10.7%; consumer and general products (798 million pounds), 10.7%; and industrial machinery and equipment (667 million pounds), 9.0%.

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Note to Editors: See attached for composition of end-use markets. Readers may obtain CD-ROM copies of "Annual Data 2006 - Copper Supply and Consumption, 1985-2005," for $10.00 each from the Copper Development Association Inc., 260 Madison Avenue, New York, NY 10016, or by calling 212-251-7200.

Composition of End-use Markets

Building Construction: building wire, plumbing and heating, air conditioning and commercial refrigeration, builders hardware, architecture.

Electrical and Electronic Products: power utilities, telecommunications, business electronics, lighting and wiring devices.

Industrial Machinery and Equipment: in-plant equipment, industrial valves and fittings, non-electrical instruments, off-highway vehicles, heat exchangers.

Transportation Equipment: automobiles, trucks and buses, railroads, marine, aircraft and aerospace.

Consumer and General Products: appliances, cord sets, military and commercial ordnance, consumer electronics, fasteners and closures, coinage, utensils and cutlery, miscellaneous.

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