Domestic Copper prices may drop to Rs 720-725 per kg in FY23: Crisil


Domestic copper prices, which had increased sharply over the past year, may drop gradually to average Rs 720-725 per kg in 2022-23, said on Thursday.

The price of copper wire bars averaged Rs 738 per kg (ex-factory) in FY22, a 42 per cent rise year-on-year, with rates breaching Rs 800 per kg in March before retreating to Rs 790 per kg.

“Domestic copper prices, too, had risen sharply over the past year, in sync with 3-month LME prices, as is the normative…For the rest of this fiscal, however, we see domestic prices declining gradually, to average Rs. 720-725 per kg,” Research said in a statement.

Lockdown in China, the world’s top consumer of copper, in the wake of rise in COVID-19 cases, has weakened the demand for the metal, leading to prices zooming after a strong run-up over the past two years.

The rally was driven by demand for clean-energy investments and concerns about supply from top producers in Chile and Peru.

The Russia-Ukraine war stoked the supply worries and drove prices up to a record USD 10,720 per tonne on March 7. This was despite China ramping up production of refined copper after the Winter Olympics ended on February 20.


Then COVID-19 cases reappeared in China, stoking both demand and supply fears. The production of refined copper, which was being enhanced in the mainland, thus became available for exports. As a result, LME (London Metal Exchange) inventory doubled in April compared to February.

have since crashed to USD 9,200 per tonne in May, a 14 per cent drop from the March peak. They are likely to remain under pressure in the near term on account of factors like softer Chinese demand and improvement in mine supplies.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard,

Digital Editor

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *