Copper is a metal that has played vital role in human civilization. One of the earliest metals harnessed by the human beings, copper is still widely used as an industrial raw material. Copper is the third largest consumed metal after steel and aluminium in the world. Copper is used as electrical conductor, construction material and as components in telecommunications and alloys.

Global Situation

Global copper mine production in 2006 (Jan-Dec) is projected to rise 1.9% to 15.17 million ton compared with 2005. It may rise to 16.20 million ton in 2007 bringing an additional of 1 million ton.

Globally, refined copper production is expected to increase 5.4 percent to 17. 40 million ton in 2006 compared with 2005. In 2007, refined copper production may increase to18.06 ton showing an increase 3.8 percent. Chile, Canada, Australia and Indonesia are the leading producers of copper. US and Europe are the main sources for copper scrap. Main importing countries of copper are the US, the European Union, Japan, Spain, China, and Philippines.

Global consumption of refined copper is projected to increase by 3.3 percent to 17.16 ton in 2006 compared with 2005. In 2007, the copper consumption is expected to grow 4.2 percent to 17.88 million ton compared with 2006.

Indian Situation

India is a significant major producer of copper accounting for 3 percent of the global output. The annual production is 400,000 ton. India is also an exporter of copper with the three major Indian companies--Birla Copper, Sterlite Copper and Hindustan Copper--enhancing their capacities. Indian copper price is fixed as per the previous day’s rate at the London Metal Exchange.

Global Price Situation

Average price of copper rose 89 percent to the US $6,490 per ton during the first eight months of 2006 compared to the same period a year ago. Supply disruptions due to labour trouble and natural disasters acted as the main triggers for rise in price. Price of copper in 2007 is projected to fall to US $6,250 per ton due to stabilization of supply compared to 2006. Capacity expansion and setting up of new mines, economic growth in China, India etc are the key factors that would shape copper prices movements.