Hindustan Copper hikes prices by 8%

Hindustan Copper, a public sector undertaking, has raised its product prices by 8 per cent with immediate effect to align the prices of the red metal with those in the global market. This is the company's second price revision this month.

With the current upward revision, copper cathode (full) is quoted at Rs 279,300 a tonne, while cathode cut is sold at Rs 260,100 a tonne. Prices of copper cathode full and cut, in the previous revision, were fixed at Rs 260,100 and Rs 261,500 a per tonne, respectively.

The decision is significant, as copper buyers were anticipating a price revision towards the end of the month as a normal practice. But, in the last few months, the copper producer has been revising prices as and when any drastic change takes place on the LME.

The prices of copper rod of 8 mm (standard) have been raised similarly to Rs 285,700 from Rs 266,400 a tonne in its last revision, while wires above 8 mm thickness cost Rs 287,500 a tonne as against Rs 268,200 a tonne earlier.

The company has also made a significant upward revision in the financial arrangement (a lump sum amount taken from buyers and settled at the end of the month).

The financial arrangement for cathode full and half were raised to Rs 359,600 (Rs 334,800) a tonne and Rs 361,400 (Rs 336,600) a tonne, respectively. The financial arrangement for rods with a thickness of 8 mm and 12-16 mm has been raised to Rs 367,800 (Rs 343,000) a tonne and Rs 370,100 (Rs 345,300) a tonne, respectively.

The mid-term price revision can be attributed to the rising copper prices on the LME for the three-month delivery, which surged $6,285 a tonne on Monday ($6,160 on March 1) due to a sharp decline in inventory and huge Chinese demand. The LME stocks fell 1,550 tonne on Monday to 201,025 tonne, the lowest since January 23. The LME stocks peaked above 216,000 tonne in mid-February.

The spurt in Chinese copper imports is anticipated to help the red metal prices globally.

According to data from the Chinese customs department, the country imported 239,772 tonne of unwrought copper and copper products last month compared with 229,077 tonne in January. Imports in February last year were 141,076 tonne.