Copper
Introduction
Copper (chemical symbol - Cu) is a malleable and ductile metallic element that is an excellent conductor of heat and electricity. It is also corrosion resistant and antimicrobial.
It stands at the third place after steel and aluminium, 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.
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 tonnes (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%).
Global Scenario
Growth in refined copper usage has been especially strong in Asia, where 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.
Indian Scenario
In 2012, India's production of refined copper is 689,312 MT, which is around 4% of the total world production.
Sterlite Industries, Hindalco, and Hindustan Copper are three major producers of copper in India. From the status of a net importer, 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, accounting for 36% of the total Indian copper consumption. Telecom is still India's second largest copper consuming sector, accounting for 20% of the total Indian copper consumption.
Factors Influencing the Market
Copper prices in India are fixed on the basis of the rates that rule in the international spot market, and Indian Rupee and US Dollar exchange rates.
Economic events such as the national industrial growth, global financial crisis, recession and inflation affect metal prices.
Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, all affect metal prices.
Trade policies set by the Government (implementation or suspension of taxes, penalties, and quotas) affect supply as they regulate (restricting or encouraging) material flow.
Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.
As societies develop, their demand for metal increases based on their current economic position, which could also be referred as ‘National Economic Growth Factor’.
Introduction
Copper (chemical symbol - Cu) is a malleable and ductile metallic element that is an excellent conductor of heat and electricity. It is also corrosion resistant and antimicrobial.
It stands at the third place after steel and aluminium, 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.
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 tonnes (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%).
Global Scenario
Growth in refined copper usage has been especially strong in Asia, where 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.
Indian Scenario
In 2012, India's production of refined copper is 689,312 MT, which is around 4% of the total world production.
Sterlite Industries, Hindalco, and Hindustan Copper are three major producers of copper in India. From the status of a net importer, 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, accounting for 36% of the total Indian copper consumption. Telecom is still India's second largest copper consuming sector, accounting for 20% of the total Indian copper consumption.
Factors Influencing the Market
Copper prices in India are fixed on the basis of the rates that rule in the international spot market, and Indian Rupee and US Dollar exchange rates.
Economic events such as the national industrial growth, global financial crisis, recession and inflation affect metal prices.
Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, all affect metal prices.
Trade policies set by the Government (implementation or suspension of taxes, penalties, and quotas) affect supply as they regulate (restricting or encouraging) material flow.
Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.
As societies develop, their demand for metal increases based on their current economic position, which could also be referred as ‘National Economic Growth Factor’.
