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Surging copper hits local users

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Dilip Kumar Jha Mumbai
Last Updated : Feb 14 2013 | 7:29 PM IST
Growing copper prices have forced many small and medium domestic copper users to shut down their shops or cut down their activities.
 
Copper prices on the London Metal Exchange (LME) gained $679.5 in March to $5527.5 per tonne. Surprisingly, inventories also surged 6,650 tonne.
 
Domestically, virgin copper, that is, wire bar rose to Rs 293 per kg from Rs 279 per kg on the March 1 while heavy scrap, armiture, utensil scrap and sheet cutting surged to Rs 275 (Rs 257) a kg, Rs 268 (Rs 251) a kg, Rs 247 (Rs 235) a kg and Rs 261 (Rs 247) a kg respectively.
 
"Domestic copper players are can not afford using copper at such a higher price as the end products users are not mentally ready to pay the proportionately rise in final output price," said Rohit Shah, president, Bombay Metal Exchange.
 
Copper prices crossed the $5500 barrier overnight and set a new record of $5510 per tonne on the news of the breakdown of a concentrator mill at Chile's Collahuasi copper mine. This will result in a production shortfall of 7,000-8,000 metric tonne of contained copper.
 
Meanwhile, continued rally on the LME lifted copper futures on the Shanghai Futures Exchange on Friday. The benchmark June 2006 contract jumped CNY1,050 a metric tonne to settle at CNY50,120 per tonne, after hitting an all-time high at CNY50,600 per tonne during the session on short covering.
 
Gold, silver hit new peaks
 
Precious metals like gold and silver are rising dramatically with the fund and institutional buying from the global investors.
 
The price of gold has hit its highest level for 25 years, reaching more than $588 an ounce in morning trade on March 30 on belief that as a sound investment option, precious metals could outperform stocks and bonds.
 
Strong demand in India and China, coupled with declining gold output in South Africa "� a key bullion producer - has stirred the shortage and is maintaining high prices.
 
Precious metals like gold, silver and platinum are appealing to investors who are concerned over unpredictable conditions in West Asia, dollar instability and inflation, an analyst said.
 
In India, standard gold prices surged an all time high at Rs 8,490 per 10 gm, a gain of Rs 290 while pure gold (.999) lifted to Rs 8,530 per 10 gm, a gain of Rs 290, on Friday. In all, the yellow metal surged Rs 385 (standard gold) and Rs 380 (pure gold) in March.
 
Silver, too, saw its highest level in 22 years, while platinum reached an all-time high of $1,095 an ounce. Spot silver closed at Rs 17,405 per kg as against Rs 13,770 a kg on March 1.

 
 

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First Published: Apr 01 2006 | 12:00 AM IST

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