Finance News
Complete Finance & Business News Journal

Copper prices touch highest level in 16 months, says ICRA


Pune: Copper prices have risen 40% in 4 months to the highest in 16 months because the pandemic disrupted the provision chain, score company ICRA stated.

“The mining restrictions as a result of pandemic is estimated to have resulted in a pointy drop in the manufacturing of copper ore throughout Q2 CY2020. That is progressively ensuing in a scarcity of the completed metallic in the market and the prevailing state of affairs could proceed in the close to time period, which is fueling metallic prices upwards,” it stated.

Prices have risen from a three-year low in March 2020, stated Jayanta Roy, Senior Vice President and Group Head, ICRA. “Whereas the macro-economic uncertainties as a result of pandemic have impacted international copper demand, ensuing in a contraction in consumption by ~2.5% in Q1 CY2020, the supply-side impression of the pandemic however has resulted in a V-shaped restoration in prices,” he stated.

Nearly half of the world’s copper ore is mined in South America, primarily in Chile and Peru, the place mining output has fallen virtually 50% due to the pandemic, ICRA stated. The disruption has resulted in decrease major metallic manufacturing from the start of June 2020, it stated.

In India, Hindustan Copper Ltd (HCL) is the one copper miner and Hindalco Industries Ltd (Hindalco) is at present the one working copper smelter-cum-refiner in the nation. “Beneath the prevalent state of affairs, HCL is prone to profit from the buoyant worth ranges. The general profit nevertheless could be constrained by restricted operations as a result of pandemic. Then again, Hindalco’s margin from copper operations could be impacted by the correction in TC/RC,” stated ICRA.

Get real time updates directly on you device, subscribe now.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Translate »