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Copper Mail Norddeutsche Affinerie AG Aurubis Stolberg

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					5 January 2005                          Copper Mail
No. 9                             Norddeutsche Affinerie AG
 EDITORIAL
 Melting lead over a flame and then pouring it into cold water to tell your
 fortune for the New Year from the shapes formed in the water is a traditional               Copper price maintains its high level in December
                                                                                             Kupferpreis im Dezember weiter auf hohem Niveau
 custom in Germany. We would consider this procedure particularly charming if            Copper quotation und Börsenbestände
                                                                                         Kupfernotierung and LME stocks

 it were performed with copper. However, if tried at home, it would already be                                                         Stocks in Europa
                                                                                                                                       Bestände Europe                                       Stocks in
                                                                                                                                                                                             Bestände USA
                                                                                                                                                                                                                                               US$/t
                                                                                                                                                                                                                                            in US$/t
                                                                                                 1.000
                                                                                              in 1.000 t t
                                                                                                                                       Stocks in Asien
                                                                                                                                       Bestände Asia                                         Cu price LME
                                                                                                                                                                                             Cu-Preis LME
 doomed to failure in view of the different melting points of the metals. Lead                   1.600                                                                                                                                        3.200
                                                                                                                                                                                                                                              3.000
                                                                                                                                                                                                                                              3.000
                                                                                                1.400
 melts at 327 °C, copper in contrast at 1,083 °C. Apart from that, it is safer to               1.200
                                                                                                                                                                                                                                              2.800
                                                                                                                                                                                                                                              2.800
                                                                                                                                                                                                                                              2.600
                                                                                                                                                                                                                                              2.600
 read the future for copper from how the determining factors on the market are                  1.000
                                                                                                                                                                                                                                              2.400
                                                                                                                                                                                                                                              2.400
                                                                                                                                                                                                                                              2.200
                                                                                                                                                                                                                                              2.200
 analysed. In so doing, the basic tendency for 2005 appears to be generally                         800                                                                                                                                       2.000
                                                                                                                                                                                                                                              2.000
                                                                                                    600                                                                                                                                       1.800
 positive. But traditionally copper has always been good at providing surprises.                    400                                                                                                                                       1.600
                                                                                                                                                                                                                                              1.400
                                                                                                    200                                                                                                                                       1.200
                                                                                                       0                                                                                                                                      1.000
 COPPER MARKET




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 Copper began the year 2005 with a public holiday in London, a respite which
                                                                                                       Stocks of days of usage (end of December): Europa days, USA 12 days
                                                                                                    Reichweite der Bestände (Ende November):Europe 0 0 Tage, USA 12 Tage
 the metal had certainly earned. It had after all achieved a remarkable price
 rise in 2004 of 40 %, reaching a high of 3,287 US$/t (Settlement) on
 11 October. At 3,279.50 US$/t (Settlement), the closing price of the year was
 not far off this. Backwardation, the sign of supply shortages, remained high at
 125 US$/t. Last year was also impacted by the high volatility of the prices with            Hohe Volatilität des Kupferkurses im Jahr 2004
                                                                                             als Indiz für of copper price in 2004 as an indication for
                                                                                                  volatility Engagements 2004
                                                                                             High volatility of copper price in von as an indication for
 fluctuation margins in a single month ranging from 160 to 460 US$/t.                        Fondsgesellschaften
                                                                                             investment companies‘ commitments
                                                                                                          companies‘ commitments
                                                                                               copper price in US$/t, LME settlement

 Overall, in December the global copper market was impacted by the public                    3400
                                                                                             3400
                                                                                                                                                                                                                               3287 3275 3279,5
                                                                                                                                                                                                                                3287 3275 3279,5
 holidays and year-end planning. In the period between Christmas and the                                                                        3170
                                                                                                                                                3170
                                                                                             3200
                                                                                             3200                                                                                                               3140
                                                                                                                                                                                                                 3140




                                                                                                                                                                                                                                                   304,5
                                                                                                                                                                                                                                                   304,5
                                                                                                                                                                                                                                          324,5
                                                                                                                              3105,5
 New Year speculative activities managed a further price rise on the LME of




                                                                                                                                                                                                                                          324,5
                                                                                                                              3105,5




                                                                                                                                                                                                                                452
                                                                                                                                                                                                                                452
                                                                                                                     3001




                                                                                                                                     272,5
                                                                                                                                     272,5
                                                                                             3000                                                                                                     2948
                                                                                                                                                                                                       2948
 about 100 US$/t. Physical activities became increasingly quieter as Christmas               3000




                                                                                                                                                                                                                  373
                                                                                                                                                449
                                                                                                                                                                                       2910




                                                                                                                                                                                                                  373
                                                                                                                                                                                        2910




                                                                                                                                                449
                                                                                                                                                                             2878
                                                                                                                                                                             2878
                                                                                                                                                          2843
                                                                                                                                                          2843                                                                          2950,5 2975
                                                                                                                                                                                                                                         2950,5 2975




                                                                                                                                                                                                       198
                                                                                                                                                                                                       198
                                                                                                                                                                                         210
 approached. In Asia business should be quieter in the next few days due to




                                                                                                                                                                                         210
                                                                                             2800




                                                                                                                      461
                                                                                             2800                               2833                                                                                           2835




                                                                                                                      461
                                                                                                                                2833                                                                                            2835




                                                                                                                                                                 268,5
                                                                                                                                                                268,5


                                                                                                                                                                             324
                                                                                                                                                                             324
                                                                                                                                                2721                                                  2750 2767
                                                                                                                                                                                                       2750 2767
 the forthcoming New Year celebrations which herald the beginning of the Year                2600
                                                                                             2600
                                                                                                     2497
                                                                                                                                                2721                                   2700
                                                                                                                                                                                        2700
                                                                                                     2497                                               2574,5 2554
                                                                                                                                                        2574,5 2554
 of the Rooster on 9 February 2005. Japanese copper processors are in any                                            2540
                                                                                                                     2540
                                                                                                        160
                                                                                                       160



                                                                                             2400
                                                                                             2400

 case currently not buying cathodes on the spot market since they have                               2337
                                                                                                     2337
                                                                                             2200
                                                                                             2200
 covered their current needs through long-term agreements. Demand in China                           01/04 02/04 03/04 04/04 05/04 06/04 07/04 08/04 09/04 10/04 11/04 12/04
                                                                                                     01/04 02/04 03/04 04/04 05/04 06/04 07/04 08/04 09/04 10/04 11/04 12/04

 was high until just recently. However, it will also ease down until 9 February.
 At present cathode premiums of some 130 US$/t upwards are being quoted in
 Asia. At the end of 2004 indications for premiums in daily business in Europe
 – with hardly any quantities available – are roughly at the level of, or more
 than, the annual premium of 115 US$/t.
                                                                                             GLOSSARY:
 The seaquake and flooding in South East Asia had catastrophic                               Settlement    = cash selling rate
 consequences, but they did not affect the copper market. The Indian copper                  Backwardation = amount by which the spot price is
                                                                                                             higher than the forward or futures
 producer Vedanta reported that its copper smelter in Tuticorin in Southern
                                                                                                             price
 India is located about 15 km from the coast and was not affected. Freeport-                 LME           = London Metal Exchange
 McMoRan’s Grasberg copper mine in Indonesia and the harbour facilities for                  Volatility    = quickly changing prices
 shipping concentrates were also undamaged.                                                  TC/RC         = treatment and refining charges for
                                                                                                             concentrates
 COPPER RAW MATERIALS AND PRODUCTS
 On the concentrate market there is still an imbalance between the good
 supply and limited smelter demand. Japanese and other smelters in the Far
 East have even requested deliveries to be delayed. In the next few months
 various stoppages for maintenance at smelters could aggravate the situation
 further. The copper scrap market is reorienting itself. The trade was generally
 unwilling to deliver during the last few weeks due to the unclear trend in prices
 from January 2005 onwards. The course of daily business on the product
 markets will also only become apparent in the forthcoming days and weeks.



This information contains forward-looking statements based on current assumptions and                                  NA Corporate Communication
forecasts. Various known and unknown risks, uncertainties and other factors could have the                                    Dieter Birkholz
impact that the actual future results, financial situation or developments differ from the                       Tel. 040/7883-3969, Fax. 040/7883-3003
estimates given here. We assume no liability to update forward-looking statements.
                                                                                                                             www.na-ag.com

				
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