Hindustan Copper raises prices by 5%

Public sector Hindustan Copper has raised prices of its products by 5 per cent across all sectors with immediate effect to bring them in line with global prices.

With this revision, the provisional price of copper cathode (full) for March has been fixed at Rs 3,26,100 per tonne while cathode cut has been raised to Rs 3,27,500 per tonne.

Cc rod of 8 mm dia standard is now quoted at Rs 3,30,100 per tonne, non standard 8 mm rod shot up to Rs 3,29,800 per tonne while rod of higher dia between 11-15 mm will be sold at Rs 3,31,700 per tonne.

Although buyers of this red metal have to pay about Rs 95,000 over and above this provisional price (known as financial arrangement) as security deposit, this will be accounted for at the time of settling the account, i.e., after the completion of the calendar month.

Indian metal producers always charge additional money from their customers to hedge against any major price fluctuation in global copper prices.

The company announced the final settlement of the February account of their customers, with cathode full quoting at Rs 3,43,282 per tonne, 12.37 per cent higher than the final price last month.

The final price of copper cathode cut went up to Rs 3,44,782 per tonne while cc rod 8 mm standard, non standard and higher dia between 11-15 mm have been finally settled at Rs 3,47,512 per tonne, Rs 3,47,112 per tonne and Rs 3,49,205 per tonne, respectively, marking an increase of above 12 per cent from their respective last month prices.

The company, however, clarified that prices on the date of delivery will be applicable, irrespective of the date of making the financial arrangement.

The three primary copper producers in India, including Sterlite, Hindalco and Hindustan Copper, revise their copper prices on a monthly basis in line with the price movement on the LME, domestic demand and supply, and current prevailing duties and exchange rates.

In February, copper on the LME jumped 6 per cent to $8,450, while the price of the red metal in the spot Mumbai market perked up by 10 per cent to Rs 335 per kg.

India produces about 1.5 million tonnes of copper, with 50 per cent coming through the primary route and the rest through the secondary channel. The country's copper consumption, however, constitutes about 0.8 million tonnes, resulting in a net surplus of the metal in the country.

Although, a majority of the small copper processors in the country have shut down their business because of price volatility in the global market, the major ones are still hopeful of a revival in fortunes on rising domestic demand.

The global refined consumption in 2005 was estimated at around 16.85 million tonnes and expected to increase by 6.1 per cent to 17.88 million tonnes in 2006, with Asia continuing to be the growth engine.

New applications and the increased use of the metal in the power sector will also drive growth in this segment. In 2007, world copper consumption was forecast to increase a further 3.5 per cent to 18.1 million tonnes, largely due to continued growth in China.