Characteristics Of Copper
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- Copper ranks third
in world metal consumption after steel and aluminum. It is a
product whose fortunes directly reflect the state of the world's
economy.
- Copper is the best
non-precious metal conductor of electricity. The metal's exceptional
strength, ductility, and resistance to creeping and corrosion, makes
it the preferred and safest conductor for building wiring. Copper is
also used in power cables, either insulated or uninsulated, for high,
medium and low voltage applications. Copper is an essential component
of energy efficient motors and transformers and automobiles.
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Supply and Demand
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Global Scenario
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- Economic,
technological and societal factors influence the supply and demand of copper.
As society's need for copper increases, new mines and plants are
introduced and existing ones expanded.
- Land-based resources
are estimated at 1.6 billion tons of copper, and resources in deep-sea
nodules are estimated at 0.7 billion tons.
- The global
production of refined copper is around 15 million tons.
- The major
copper-consuming nations are Western Europe (28.5%), the United States
(19.1%), Japan (14%), and China (5.3%).
- Copper and copper
alloy scrap composes a significant share of the world's supply.
- The largest
international sources for scrap are the United States and Europe.
Chile, Indonesia, Canada and Australia are the major exporters and
Japan, Spain, China, Germany and Philippines are the major importers.
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Indian Scenario
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- The size of Indian
Copper Industry is around 4 lakh tons, which as percentage of world
copper market is 3 %.
- Birla Copper,
Sterilite Industries are two major private producers and Hindustan
Copper Ltd the public sector producers.
- India is emerging as
net exporter of copper from the status of net importer on account of
rise in production by three companies.
- Copper goes into
various usage such as Building, Cabling for power and
telecommunications, Automobiles etc. Two major states owned
telecommunications service providers; BSNL and MTNL consume 10% of
country's copper production. Growth in the building construction and
automobile sector would keep demand of copper high.
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World Copper Markets
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- LME and NYMEX are
the two international markets, which provide direction to the copper
prices.
- The eight leading
refining nations, viz., United States,Japan, Chile, Canada, Zambia,
Belgium, and the Federal Republic of Germany account for 67% of total
refined metal production.
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Frequency Distribution of Copper Spot Prices at
LME
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Percentage Change
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0 - 2
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2 - 5
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5 &
above
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Monthly
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46
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36
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21
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Factors Influencing Copper Markets
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- Copper prices in
India are fixed on the basis of the rates that rule on LME the
preceding day.
- World copper mine
production through exploration of new mine and expansion of existing
mine.
- Economic growth of
the major consuming countries such as China, Japan, Germany etc.
- Growth and
development in the Building, electronics and electrical industry.
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