Volatile copper prices have left the Jagadhri copper and copper alloy sheet manufacturers grappling with rising inventories with buyers rejecting orders citing higher prices.
Jagadhri has 100-odd copper sheet manufacturers catering to sanitary, electric and horological sectors. The copper sheet industry registered revenues of Rs 500 crore in the fiscal 2007-08 but has projected a flat growth for 2008-09.
According to the London Metal Exchange, prices of copper, which was ruling at $8,000 per tonne, declined to to $2,800 per tonne but has, in last couple of few months, again increased to $4,700 per tonne.
Talking to Business Standard, Ashwani Goel, member, Jagadhri Copper and Copper Alloy Sheet Manufacturer Association, said though copper prices declined in the last few month, it did not bring any relief to the copper manufacturers in the region as they were now struggling with volatile prices.
“Volatile prices are resulting in cancellation of orders thereby increasing inventories for the manufacturers. Exports have taken a severe hit as buyers have started demanding huge discounts on the copper products. Piling up of inventories and cancellation of orders have resulted in the production coming down by 30-40 per cent,” he said.
