Copper chimney !!!

Copper is looking bullish. Expect some further upsides with Nov mcx target to be 190 or more.

(Credits- This has been taken from a posting in another forum)


Copper prices increased by Rs 14,000 per tonne

Hind Copper initiates biggest-ever hike in domestic market

Dilip Kumar Jha / Mumbai November 04, 2005



Hindustan Copper, the only integrated copper producer in the country, has increased prices by Rs 14,000 a tonne, perhaps one of the highest upward price hike in the history of copper in the country.

Effective November 1, cathode full will cost Rs 204,900 a tonne, while cathode cut will quote at Rs 206,300 a tonne. CC rod 8 mm is quoted at Rs 209,800 a tonne, above 11 mm rod will cost Rs 211,700 a tonne and wire bar full will cost Rs 212,900 a tonne. In fact, prices were increased in October as we1l.

Copper majors Hindustan Copper, Hindalco Industries and Sterlite Industries announce their provisional prices for the ongoing month and final prices for the last month on the first of every month.

They also keep some differences between the actual cost for the ongoing month (provisional price) and the real charge (financial arrangement) so that in case prices on the LME move up, it is easy to collect the difference between the final and provisional prices from customers.

“Copper consumers, while launching this new mechanism, opposed the move of copper producers arguing that they are unaware of the price of the product they were buying and came to know only after the month-end,” a trader said.

“Some of them always sell products on the basis of their purchase price, therefore margins get squeezed,” another trader added.

These financial arrangements are inclusive of applicable excise duty and education cess but exclusive of excise duty, education cess, sales tax, octroi and other statutory levies will be extra as applicable.

Copper price in the domestic market is calculated on the basis of average price for the last month at the London Metal Exchange and current prevailing duties in the country.

Currently, copper prices are moving upwards uninterruptedly, barring small corrections, and are all set to touch $4200.

According to International Copper Study Group (ICSG), annual copper mine capacity is expected to reach 19.3 million tonne by 2009. This represents an increase of about 3.5 million tonne over a five years from 2004.

Of this increase, 2.1 million tonne is copper concentrates and 1.4 million tonne is SX-EW production. Smelter capacity in 2009 is projected to reach 17.4 million tonnes, an increase of 1.9 million tonnes from 2004, with capacity additions mainly occurring in the first three years of the period covered. The ICSG expects world copper refinery capacities to increase by 3.1 million tonne between 2004 and 2009.

Experts believe that the global copper market may be in deficit this year but smelter capacity utilisation to recover next, contributing to a 263,000 tonne surplus in 2006, which may bring some pressure on prices in the long run.

Mcx Copper Nov (close 183.75) seemed to have given a breakout. Now trading around 186 after touching a high of 189.

Copper closed at 190.90 today

Cheers :-) Nov MCX as of this writing is quoting at 197.5. Some more to go (hopefully!!)

I am somehow not able to get historical data on LME prices for base metals. I don not want charts, I want numbers. I wish to run a few tests on these numbers and check for trends. All my findings I can post it if you wish. Kindly give me a link or some thing.

Copper past 200..expect atleast 210 as per my view..

Making my exit with sl a bit below 200.

Sucker whipsawed at 200 and Nov finally closed at 206.8 :-(

Copper touched 211 high yesterday!!!