Copper is a highly conductive metal that is widely used in electrical and electronic products. India is emerging as a net exporter of copper as its production has grown, with the largest copper consuming sector now being electrical and electronics. Globally, copper demand has increased strongly in Asia while major exporters include Chile, Zambia, and Peru and major importers include China, the US, and Germany. Copper supply and demand are influenced by economic and geopolitical events as well as commodity-specific factors like new production facilities or uses.
2. Introduction
Copper (chemical symbol - Cu) is a malleable and
ductile metallic element that is an excellent
conductor of heat and electricity.
It stands at the third place after steel and
aluminum, in the context of consumption.
Copper is an important contributor to the
national economies of mature, newly developed
and developing countries.
Copper is one of the most recycled of all metals. It
is our ability to recycle metals over and over again
that makes them a material of choice.
3. Indian Scenario
In 2012, India's production of refined copper is
689,312 MT
India produces around 4% of the total world
production.
Sterlite Industries, Hindalco, and Hindustan
Copper are three major producers of copper in
India
India is emerging as a net exporter of copper on
account of a rise in the production of copper.
Electric and electronic products industry has
become India's largest copper consuming sector.
4. Global Scenario
Growth in
refined
copper usage
has been
especially
strong in Asia
demand has
expanded
more than
five-fold in
less than 30
years.
Major refined
copper
exporting
countries are
Chile,
Zambia,
Japan, Russia
and Peru,
while
major refined
copper
importing
countries are
China, USA,
Germany,
Italy and
Taiwan.
7. Demand and Supply
In 2011, world’s copper mine production continued to
underperform with respect to capacity, and remained at the
2010 level of 16.005 million metric tones (MMT).
In 2011, the global refined copper production was 19.630 MMT,
up from 18.998 MMT in 2010.
The global refined copper consumption was 19.988 MMT,
compared with 19.375 MMT in the previous year.
On a regional basis, refined copper production increased in
Africa (11%), Asia (6%), Europe (4.5%) and Oceania (12.5) but
decreased in the Americas (-3.5%).
8. Factors Influencing the Market
Economic events such as the national industrial growth,
global financial crisis, recession and inflation affect
metal prices.
natural disaster, supply disruption, accident, strike,
and so forth, or industry restructuring, all affect metal
prices.
Geopolitical events involving governments or
economic paradigms and armed conflict can cause
major changes
Commodity-specific events such as the construction of
new production facilities or processes, new uses or the
discontinuance of historical uses also affects prices.
10. Contract specification
Symbol COPPER
description COPPERMMYY
Trading unit 1MT
Quotation/ base value 1MT
Maximum order size 70MT
Tick size 5 paisa/kg
daily price limit 4%
Initial margin 5%
Delivery unit 9MT with tolerance limit of +/- 1%(90 kg)
Delivery margin 25%
Delivery centre Within 20km outside Mumbai octroi limit
Delivery logic Both option
