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India copper consumption may witness dip in 2012 - ImaCS

Steel News - Published on Wed, 12 Sep 2012

IRIS reported that India’s copper consumption may witness a dip in 2012 view of slowdown in key end use segments like construction, power, industrial machinery and equipments. Over the period 2002 to 2011, India’s copper consumption has increased at an annual rate of 6.3% to 540 kilotonnes in 2011. However, it is expected to be at 4% in 2012.

ICRA Management Consultancy Services said that although India’s annual per capita consumption of copper has increased from 0.23 kilogram in 2000 to 0.5 kilogram in 2011, it compares poorly with China’s per capita consumption of 5.9 kilogram. Over the medium term, India’s per capita consumption growth is not expected to mirror the strong growth trend evident in China.

IMaCS said that India’s primary copper production capacity has remained at around 950 kilo tonnes per annum over the last few years. Capacity could increase to 1.45 million tonne per annum by 2014 to 2015 with higher exports of refined copper and products to Europe and Africa.

IMaCS report said that during 2011, although world copper prices increased 17.2% to USD 8,828 per tonne, they experienced a sharp fall from August 2011. By comparison, domestic prices increased 16.6% to average INR 455.3 kilogram. Domestic prices have however declined at a lower rate from late 2011 because of the substantial rupee depreciation.

The report further said that In 2012, world copper prices are forecast to decline 10% to 11% to average around USD 7,900 per tonne. Copper prices averaged USD 8,103 per tonne during H1 2012, and prices are forecast to decline to around USD 7,700 per tonne for H2 2012.

The decline reflects the significant decrease in copper prices from 2Q2012 being sustained over 2012. Copper prices are forecast to decline 3% to 5% in 2013 as growth in world refined copper production is expected to outpace growth in consumption in 2013, placing downward pressure on prices.

Source: IRIS


Posted By : admin on Wed, 12 Sep 2012
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