The year is almost over and, as predicted at its start, copper in India has not really performed that poorly, trading between and anticipated price range. All things considered, copper has held up remarkably well in the face of oversupply.
In January, sector analysts had given a thumbs up to copper prices because of initial signs of a global economic recovery. The year had started with the international copper markets under pressure because of copper surplus. Spot copper prices on the London Metal Exchange had crashed around 28% from the highs in 2011 to US $7,336 per ton. But in the year, thanks to a weak rupee coupled with a marginally better demand, copper prices have not shown much of volatility.
November Copper Price Movement
If one were to analyze November price movement in India, both in the spot and futures markets it has been fairly range bound.
Demand from consuming industries supported the upside in copper prices, with copper mixed scrap available at approximately $6.96 (Rs 431) per kilogram.
Mid-month, copper futures were trading slightly higher at about $6.64 (Rs 411.70) per kg as speculators enlarged positions after base metals strengthened overseas amid a pick-up in spot demand.
At India’s Multi Commodity Exchange (MCX), copper for delivery in November had edged up by 0.16%, to about US $ 6.64 (Rs 411.70) per kg in a business turnover of 724 lots. The metal for delivery in February 2015 traded higher by 0.11%, to approx. US 6.74 (Rs 417.30) per kg in 25 lots.
Meanwhile, copper for delivery in three months traded changed but slightly at US $6,678 a ton at the LME.
On November 18, copper futures rose 0.48% to about $6.64 (Rs 411.20) per kg amid positive cues from overseas markets and pick-up in spot demand. The metal for delivery in February next year went up by 0.41%, at about US $6.72 (Rs 416.80) in a volume of 27 lots.
Globally, copper for three months delivery advanced by 0.20% to US $6,646.25 a ton at the LME.
Indian copper mostly mirrors trends at the LME, and market analysts attributed the rise in copper prices in futures trade to a better trend on the LME coupled with the interest shown in the domestic spot markets.