Copper Scenario

Copper:

Major Characteristics:

  • Copper, chemical symbol –Cu is a malleable & ductile metallic element that is an excellent conductor of heat & electricity.
  • It stands at the third place in context of the world consumption after steel & aluminum.
  • Copper is an important contributor, to the national economics of mature, newly developed & developing countries.

Demand & Supply Scenario:

  • Copper mine production was up nearly 2% from 15.805 million MT in 2009 to 16.099 million MT in 2010.
  • In 2010; global refined copper production was 19.186 million MT, up from 18.653 million MT in 2009; & global refined copper consumption was 19,200 million MT, compared with 18.243 million MT in previous year.
  • After substantial surpluses in 2008 & 2009, when it had seen an oversupply of 3,43,000 MT & 4,10,000 MT; respectively the global copper market witnessed deficit of 14,000 MT in 2010.

Global Scenario:

  • While Chile accounts for 34% of the total world copper mine production, Peru, U.S.A, China, Australia, & Indonesia, together are responsible for around 32%.
  • Growth in refined copper usage has been especially strong in Asia, where demand has expanded more than five-fold in less than 30years.
  • Major refined copper exporting countries are Chile, Zambia, Japan, Russia & Peru, while major refined copper importing countries are China, USA, Germany, Italy, & Taiwan.

Indian Scenario:

  • India’s production of refined copper, per annum is around 4% of total world production & in terms of figures it is around 6,00,000 MT.
  • India’s consumption of refined copper per annum is around 5,35,000 MT which accounts for only 3% of the world copper market.
  • Sterlite industries; Hindalco; & Hindustan Copper are three major producers of copper in India.

Factors Influencing Market:

  • Copper markets are affected by the prices which are ruling on the International spot market, & Rupee & US Dollar Exchange rates.
  • Economic events, global financial crisis, recession, & inflation affect metal prices.
  • Commodity Specific events such as the construction of new production facility or processes, unexpected mine or plant closures; or industry restructuring, all affect metal prices.
  • Government set trade policy (implementation or suspension of taxes, penalties, & Quotas) that affect supply by regulating (restricting or encouraging) material flow.
  • Geopolitical events involving governments or economic paradigms & armed conflict can cause major changes.