The Hindu Business Line : Copper prices flare up

COPPER spot prices in the domestic market have increased by 8 per cent or Rs 12 per kg within a week, following a firm trend on LME coupled with steady domestic demand.

In Mumbai, copper wire bar prices strengthened to Rs 165 per kg on Monday against Rs 153 per kg as on February 2.

At London Metal Exchange (LME), copper cash too gone up by $33 a tonne at $2,573 a tonne over last week.

Copper spot in the Asian market touched $2,600-mark on Monday, registering an eight-year high. It was quoted at $2610 per tonne, despite reports that a weeklong strike had ended at BHP Billiton's Cerro Colorado mine in Chile.

"Local prices have been going up mainly because of strong LME trend. I think fresh local demand will be slowdown at the current level," a local dealer said.

Copper futures in New York have climbed 12 per cent this year to a six-year high, largely on disruptions in production and increased metals demand in China, the world's biggest copper consumer.

"Copper prices may not fall if the strike ends," another dealer said.

The global copper market is likely to face supply deficits of 5,00,000 tonnes this year and expected a deficit of 3,00,000 tonnes in 2005, analysts said.