Although the hike is nominal by up to 0.25 per cent, this is the sixth upward movement since February, which indicates that the red metal demand in the domestic market continues to be strong. Manufacturers of consumer durables, uninterrupted power supply (UPS) equipment and computers and the infrastructure sector consume majority of global red metal output.
With this upward revision, copper cathode full and half are quoted at Rs 367,200 per tonne and Rs 368,600 per tonne from their previous levels of Rs 367,000 per tonne and Rs 368,500 per tonne, respectively.
However, standard and non-standard cc rod of 8mm diameter are sold at Rs 372,100 per tonne and Rs 371,800 per tonne. CC rod of high diameter between 11-16 is quoted at Rs 373,900 per tonne.
Copper producers led by HCL, Hindalco Industries' Birla Copper and Sterlite Industries revise prices on a monthly basis to announce the provisional price for the current month and final price for the past month. The provisional price indicates what approximately buyers have to pay while the final price indicates the level at which the company settled the transacted business of last month.
For June, HCL also announced a marginal increase in final settlement prices of copper cathode full and cut. Copper cathode full be priced at Rs 386,483 per tonne as compared to Rs 386,358 per tonne, while cut cathode will be placed at Rs 387,983 per tonne against previous Rs 387,858.
Copper cc rod standard and non-standard of 8mm are finally settled at Rs 391,723 per tonne and Rs 391,323 per tonne in comparison with Rs 390,848 per tonne and Rs 390,448 per tonne, while rods of higher diameter surged to Rs 393,546 per tonne as against Rs 392,644 per tonne in the last month.
Meanwhile, copper prices on the London Metal Exchange (LME) perked up 10 per cent or $795.5 to $8775.5 per tonne on dollar weakening against euro.
In last six months, copper prices on the LME perked up to $8775.5 from $7345 per tonne, mainly because of a dramatic fall in stockpiles to 122,600 tonne from 177,800 tonne.
Interestingly, the slowdown in US economy has driven speculators out of the world's largest economy thereby, growing investment potential in base metals, including copper.
"Some speculative activities have been witnessed in the past week as fundamentals, including stockpiles have not drowned to justify such a dramatic price rise," a local trader said.
Stockpiles monitored by the LME-registered warehouses slumped marginally to 122,600 tonne, a fall of 1,350 tonne. But, the metal on warrant has increased to 115,725 tonne towards the end of the month from 110,550 tonne in the beginning.
