| Today, spot copper touched an intra-day new high of $8,150 a tonne in the LME,a gain of about $335 over yesterday's close. |
| In the domestic spot market, copper cathode gained Rs 10 to Rs 412 a kg and led the entire segment amid lack of physical buyers. |
| Rohit Shah, president, Bombay Metal Exchange, and owner of Perfect Valves and Machine Tools Corporation, feels that prices on the LME are unrealistic. His views are seconded by Hemant Parekh of Ravi Metal Products. Surendra Mardia, senior vice-president, Bombay Metal Exchange, feels that prices are based only on speculation which is detrimental to traders and miners. |
| Despite rising cost of copper concentrate, the raw material for copper production, production cost of the metal is still below $3,000 a tonne. |
| Rising copper prices doesnnot bode well for developing countries where infrastructure growth is on a high, Mardia added. Infrastructure development involves wide use of copper. |
| An association of copper users in London has threatened the LME saying its members will pull out from trading if prices are not checked through its controlling mechanism. User are suffering due to rising prices, said Simon Payton, general secretary, International Wrought Copper Council (IWCC), London. |
| Generally, surging prices are intervened by the exchange through an increase in margins. Although the LME recently increased margins on lots of 25 tonne each by 117 per cent to $14,575 a lot rife speculations failed to check spiralling prices. |
| End users have already started questioning the credentials of mechanism of LME pricing products, he added. The copper plumbing sector has been worst hit by the price spurt. This is a sector where sudden price hikes may see relatively stable inputs such as plastic being used. |
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