The trend in international copper market had a cascading affect in the domestic market too, which send copper wire bar prices zooming by Rs 700 to a new high of Rs 24,300 per quintal in the last one week. Scrap too rose in tandem. | |
| With the current price rise, armiture is quoted at Rs 21,100 per quintal while heavy scrap is sold at Rs 22,200 per quintal. Sheet cutting and utensil scrap have also taken the cue and settled at Rs 20,700 per quintal and Rs 19,200 per quintal, respectively, on Monday. |
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| In fact, the average local price has gone up by Rs 1,000 per quintal. Local players calculate the average price by taking into account the average price of the metal for 15 days on the London Metal Exchange. This price becomes selling price for the next fortnight in the local market as per a mechanism set by local players. |
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| "Local virgin copper prices move according to the red metal's movement in the international market and the demand-supply imbalance in the domestic market has no bearing. But, scrap is somewhat severed from this movement on many occasions since local demand-supply situation plays a pivotal role," says Surendra Mardia, senior vice-president, Bombay Metal Exchange. |
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| "Chinese speculative buying is the only reason for the current price rise. Traders there have vested interests in lifting the prices to the imaginative levels," adds Mardia. |
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| The announcement of production cut by about 50 per cent from the existing capacity of 600 tonne to 300 tonne per day by Konkola Copper Mines (KCM) is also a concern for traders. |
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| Rohit Shah, president, Bombay Metal Exchange, also agreed with the current speculative buying in China and warned that Indian players should not get involved as it might burn their fingers. |
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