PRESENTED BY : TEJKUMAR

Copper

Introduction

Copper (chemical symbol - Cu) is a malleable and ductile metallic element that is an

excellent conductor of heat and electricity.

It stands at the third place after steel and aluminum, in the context of consumption.

Copper is an important contributor to the national economies of mature, newly developed and developing countries.

Copper is one of the most recycled of all metals. It is our ability to recycle metals over and over again that makes them a material of

choice.

Indian Scenario

In 2012, India's production of refined copper is 689,312 MT

India produces around 4% of the total world production.

Sterlite Industries, Hindalco, and Hindustan Copper are three major producers of copper in India

India is emerging as a net exporter of copper on account of a rise in the production of copper.

Electric and electronic products industry has become India's largest copper consuming sector.

Global Scenario

Growth in refined copper

usage has been

especially strong in

Asia

demand has expanded more than five-fold in

less than 30 years.

Major refined copper

exporting countries are Chile, Zambia, Japan,

Russia and Peru, while

major refined copper

importing countries are China,

USA, Germany, Italy and Taiwan.

Demand supply scenario

Jun-95 Apr-97 Feb-99 Dec-00 Oct-02 Aug-04 Jun-06 Apr-08 Feb-10 Dec-11-902300

-702300

-502300

-302300

-102300

97700

297700

497700

697700

897700

1300

2300

3300

4300

5300

6300

7300

8300

9300

Surplus/Deficit (LHS) LME Copper 3-M Last Price (RHS)

in M

T

$/M

T

Demand and Supply

In 2011, world’s copper mine production continued to underperform with respect to capacity, and remained at the 2010 level of 16.005 million metric tones (MMT).

In 2011, the global refined copper production was 19.630 MMT, up from 18.998 MMT in 2010.

The global refined copper consumption was 19.988 MMT, compared with 19.375 MMT in the previous year.

On a regional basis, refined copper production increased in Africa (11%), Asia (6%), Europe (4.5%) and Oceania (12.5) but decreased in the Americas (-3.5%).

Factors Influencing the Market

Economic events such as the national industrial growth, global financial crisis, recession and inflation affect metal prices.

natural disaster, supply disruption, accident, strike, and so forth, or industry restructuring, all affect metal prices.

Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes

Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses also affects prices.

Exchanges traded

Contract specification

Symbol COPPER

description COPPERMMYY

Trading unit 1MT

Quotation/ base value 1MT

Maximum order size 70MT

Tick size 5 paisa/kg

daily price limit 4%

Initial margin 5%

Delivery unit 9MT with tolerance limit of +/- 1%(90 kg)

Delivery margin 25%

Delivery centre Within 20km outside Mumbai octroi limit

Delivery logic Both option

Price movements

Hedging in copper

Scenario 1:If price falls

Scenario 2:If copper price rises

Conclusion

Copper is an industrial metal essential to

urban modernization.

While countries such as China and India stri

ve to develop a western lifestyle, the need for copper will likely increase at the

expense of a dwindling supply.

As alternatives are found to replace

copper's applications, the price of copper will continue to be volatile.