Hindustan Copper prices up 2%

Despite a meltdown in global metal prices, Hindustan Copper has raised the provisional prices of its products for May by 2 per cent effective today.

The state-run copper producer's move comes even as the government is taking measures to cool prices of essential commodities to ease inflation.

Although copper forms just 2-5 per cent of the cost in infrastructure projects and 5-10 per cent of electronic items, the mere decision to hike prices may change market sentiments, thereby thwarting the government's plan to control inflation.

With this revision, price of standard rod of 8 mm diameter is quoted at Rs 3,65,100 a tonne while non-standard rod of the same diameter is sold at Rs 3,64,800 a tonne. Similarly, rods with higher diameter, between 11-16 mm, are now priced at Rs 3,66,800 a tonne.

The price of copper cathode full and cut has been raised to Rs 3,61,100 a tonne and Rs 3,62,500 a tonne, respectively.

Meanwhile, final prices for April have been settled 2 per cent upwards at Rs 3,84,365 a tonne and Rs 3,83,965 a tonne for standard and non-standard 8mm rods, respectively. The prices of high diameter rods, between 11-16 mm, have been fixed at Rs 3,86,071 a tonne.

Similarly, prices of cathode full and cut have also been increased by 2 per cent at Rs 3,80,099 a tonne and Rs 3,81,599 a tonne, respectively. On the first day of every month, Hindustan Copper revises provisional and final prices for the current and previous month, respectively.

Copper is currently quoted on the London Metal Exchange at $8,210 a tonne after having declined more than $450 in the last two days. Experts believe the infrastructure boom in the country, especially in housing and electronic sectors, is responsible for jacking up copper demand.

Although the initial response to the government's inflationary measures is positive and prices of almost all consumable have moderated, the housing and electronic sectors are yet to adopt them.

Therefore, chances that the red metal demand will continue to surge in the domestic market is high. India is currently in surplus supply of copper with production of about one million tonnes and consumption at 0.6-0.65 million tonnes.