- Copper is a chemical element have atomic number 29 and symbol Cu.
- Copper is a soft metal, useful in conducting heat and electricity, used in various metal alloys.
- It is 100% recycleable and preferred metal used in wiring.
- Copper is a ductile metal with very high thermal and electrical conductivity. While pure copper is soft and mallable has a reddish-orange color.
In last few years, copper production has fallen short of expectations. Higher prices may be the cause of expansion of copper ore as supply responds to the incentives of increased profits. When prices stay high enough, suppliers will eventually respond and expand to the demand, or purchasers will find other products and solutions.
Demand and supply of copper
- Copper consumption will grow as a consequence of overall economic growth. The overall demand of copper is completely depend upon China.
- China is an example of overall growth, at an annual rate of 9.9% between 1980 and 2010.
- According to region, copper production increased in Africa (11%), Asia (6%), Europe (4.5%) but decreased in the Americas (-3.5%).
- According to international trade, India's power production needs to rise by 15-20% annually and to meet that, India needs to invest $1.25 trillion by 2030 into energy infrastructure.
- Growth of refined copper is 34% for chile accounts of the toatl copper mine production, while Peru, U.S.A, China, Australia together responsible for around 32%.
- Asia is stronger in growth of refined copper usage.
- Chile, Zambia, Japan, Russia & Peru are major exporting countries, while China, USA, Germany, Italy, & Taiwan are major importing countries.
Production of refined copper, per annum is around 4% of total world production in India and 6,00,000 MT in terms of figures. Consumption of refined copper per annum is around 5,35,000 MT in India which accounts only for 3% of the world copper market. Hindalco, Hindustan Copper and Sterlite industries are three major producers in India.
Factors Influencing Market
- Global financial crisis, recession, & inflation affect metal prices and economic events.
- Copper market are also affected by the prices of the spot market, rupee and US dollar exchange rates.
- Government tarde policy like taxes, quotas and penalties that affect supply by regulating material flow.