Analysts bullish on copper prices

Analysts believe that copper prices are likely to remain buoyant on strong fundamentals and firm buying potential of the European speculators as the US traders are set to remain in a holiday mood on the occasion of the US independence day on July 4.

The average LME price of copper declined to $7475.88 a tonne in June from $7682.17 a tonne in May.

Of late, the prices of the metal on the LME are on the upswing, reducing the losses of the last month's fall.

Reflecting the copper prices on the LME, Hindustan Copper (HCL) has raised the provisional prices of its products marginally by 0.37 per cent or Rs 1,200 a tonne .

However, the public sector integrated copper producer cut the final settlement prices for June by 2.65 per cent, reflecting the last month's decline in prices on the LME.

With the current price revision, the provisional price for of cc rod of 8 mm standard is Rs 320,800 a tonne, while cc rod of 8 mm non-standard is quoted at Rs 320,400 a tonne.

The cc rod beyond 8 mm sells at Rs 322,400 a tonne. The prices of copper cathode full and cut were also revised to Rs 317,600 and Rs 319,000 a tonne respectively.

The final prices of cc rod of 8 mm standard and non-standard for the June settlement are fixed at Rs 337,677 and Rs 337,277 a tonne respectively, while rods between 11 and 16 mm are finalised at Rs 339,414 a tonne. Cathode full and half, too, will be settled by 2.67 per cent lower at Rs 334,335 a tonne and Rs 335,835 a tonne respectively.

The domestic copper producers, including Hindustan Copper, Sterlite Industries and Hindalco Industries, revise prices on a monthly basis, depending on the metal price movement on the LME. Aluminium producers, however, have not yet decided any price revision for July.

Meanwhile, leading zinc producer Hindustan Zinc has cut its basic prices again by 0.70 per cent or Rs 1,100 a tonne, barely within two days of a 6 per cent price cut in response to the metal's falling prices on the LME.

The price of high-grade zinc has been brought down to Rs 157,800 a tonne (ex-Debari smelter), while the special high-grade zinc (ex-Chanderia smelter) has been cut to Rs 158,800 a tonne.

In contrast, the company has raised its lead prices marginally by Rs 900 to Rs 119,900 a tonne, owing to the appreciating metal prices on the LME.