Copper is a malleable and ductile metallic element with a chemical symbol, Cu. Copper is an excellent conductor of heat and electricity. It is also corrosion resistant and anti-microbial. Standing at the third place in context of the world consumption after steel and aluminium, copper is an important contributor to the national economies of mature, newly developed and developing countries. Copper is one of the most recycled of all metals. It is the ability to recycle metals over and over again that makes copper a material of choice.

Copper mine production was up nearly 2%, from 15.805 million MT in 2009 to16.099 million MT in 2010. In 2010, global refined copper production was 19.186 million MT, up from 18.653 million MT in 2009, and global refined copper consumption was 19.200 million MT, compared with 18.243 million MT in the previous year. After substantial surpluses in 2008 and 2009, when it had seen an oversupply of 343,000 MT and 410,000 MT, respectively, the global copper market witnessed deficit of 14,000 MT in 2010.

Global Scenario

While Chile accounts for 34% of the total world copper mine production, Peru, USA, China, Australia and Indonesia, together are responsible for around 32%. Growth in refined copper usage has been especially strong in Asia, where demand has expanded more than five-fold in less than 30 years. Major refined copper exporting countries are Chile, Zambia, Japan, Russia and Peru, while major refined copper importing countries are China, USA, Germany, Italy and Taiwan.

Indian Scenario

India's production of refined copper is approximately around 4% of the total world production and in terms of figures it is around 600,000 MT. India's consumption of refined copper per annum is around 535,000 MT, which accounts for only 3% of the world copper market. Sterlite Industries, Hindalco, and Hindustan Copper are three major producers of copper in India. India is emerging as net exporter of copper from the status of net importer on account of rise in production by these three companies. Two major state-owned telecommunications service providers - BSNL and MTNL, consume 10% of the country's copper production. Copper prices in India are fixed on the basis of the rates that rule on the international spot market, and Rupee and US Dollar exchange rates. Economic events such as national industrial growth, global financial crisis, recession, and inflation affect metal prices. Commodity specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, all affect metal prices. Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) material flow. Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes. There is also a national economic growth factor. Societies, as they develop, demand metals in a way that depends on their current economic position.

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