Copper Prices Seen Hovering At $6,000/ton By Year-End

Copper prices are not expected to go down beyond $6,000 per ton by the end of this calendar. Currently, London Metal Exchange (LME) prices are at around $6,500 per ton. Where the outlook is concerned, Santosh Sharma, Chairmancum-Managing Director, Hindustan Copper, told Steel Insights: “We expect the prices to go down to $6,000 per ton by this year-end. But I don’t expect these to go down further than this. Prices were hovering around $6,700 per ton earlier. Demand and dollar fluctuations are reasons for the slide.”

The role of Hindustan Copper Limited (HCL) in terms of prices in India is that of a market regulator. The small buyers buy from Hindustan Copper. “The private copper producers would have otherwise hiked prices to maximise their profit. But, because of HCL’s pricing, they are unable to do that. Volume-wise, we have only 5 percent marketshare at present. But, price-wise, we do play a definite role,” Sharma said.

“The market is competitive and, at times, we have to sell at a discount to LME prices.

We cannot get the full premium that the market used to demand. So, at times, we have to sell at the lower end of the LME,” Sharma said.