Hind Copper raises prices by 12%

Hindustan Copper (HCL), a public sector major, raised provisional prices of its products across the board by 12.57 per cent for April. The company also increased the final prices of various copper products by 12.88 per cent for March. The company's upward revision in prices is to bring them in line with the rising global prices.

With the current price revision, copper cathode full and cut are provisionally quoted at Rs 293,500 a tonne and Rs 295,000 a tonne, respectively. While the standard 8 mm rod is sold at Rs 299,900 a tonne, the non-standard rod of 8 mm thickness is quoted at Rs 299,500 a tonne. The provisional price of the 11-16 mm rod is fixed at Rs 301,700 a tonne.

The final prices of copper cathode full and cut are fixed at Rs 308,990 a tonne and Rs 310,490 a tonne, respectively, while the final settlement prices of standard rods of 8 mm and 11-16 mm are Rs 315,666 and Rs 317,536 a tonne, respectively.

As a regular practice, integrated copper producers declare final prices for the previous month, which will have to be paid by their customers. The provisional prices are declared at the beginning of each month.

For the ongoing month, a buyer has to pay the provisional price, which is settled after announcing the final price at the end of the month. In case, the provisional prices are higher than the final prices, the balance amount is either refunded or compensated to the buyer in the next order.

Hindustan Copper is mulling options to retain its customer base by luring them with monthly, quarterly or half-yearly discounts. According to the company sources, HCL has stopped signing long-term contracts with its customers due to high volatility in the international copper prices.

Private copper producers, Sterlite Industries and Hindalco Industries (Birla Copper), follow HCL in copper products pricing.

According to the industry sources, Sterlite and Hindalco have decided to raise the premium on various copper varieties by $10 to $265 a tonne despite low treatment and refining charges (TC/RC) at $230 a tonne.

"TC/RC was hovering around $400 a tonne, when the LME copper was on top at $8,500. But, the benefit of low TC/RC should be passed on to customers by maintaining lower premium, as India is self-sufficient in copper production," a local trader said.

TC/RC is paid by a miner to a smelter for treating and refining copper and separating it from the mined concentrate. Hence, any revision in TC/RC will have direct repercussion on copper prices.