Copper: An introduction - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Copper: An introduction

Sep 25, 2008

Copper is a non-magnetic reddish coloured metal with high electrical and thermal conductivity among pure metals only after silver. It also has tensile strength and resistance to corrosion. Copper is consumed mainly in the form of three products group viz-copper wire rods, alloy products and other copper products. Copper rods accounted almost 50% of total copper production in 2007, followed by copper alloys and other copper products.

Industry structure: The copper industry is broadly divided into three types of producers,

  1. Miners who mine the copper ore and produce copper concentrate
  2. Custom smelters who refine the copper concentrate and produce the metal and
  3. Integrated players who mine the copper ore from their captive mines and produce the metal through smelting and refining.

Mines are the principal source of copper production globally while scrap recycling accounts only a minor portion of the total supply. Nearly two third of worlds global mine production is integrated while rest is sold in the custom smelting markets. The five largest copper mining countries are Chile, US, Peru, Australia and Indonesia, while the major custom smelting locations include China, Chile, Japan, Russia and Germany.

Pricing structure: Prices of copper are determined at the London Metal Exchange (LME). However, producers normally charge a regional premium, which is market driven. Custom smelters profitability is determined by the TcRc (Treatment/ Refining charges) rates, as the prices of copper concentrate are equal to LME prices net of TcRc charges. Prices of finished copper products are equal to LME plus premium. The TcRc rates are influenced by the demand and supply of copper concentrate in the market, current and forecasted LME prices, mining rates and freight costs.

User industry: Copper has wide use across most of the industries. Its main user industries are construction, electric and electronic products, industrial machinery and equipment and consumer & general products.

As per Brook Hunt, the UK based global mining and metal industry consulting firm, copper does not posses any major substitution threats between 2008 and 2020. Moreover it not only expects copper to retain its position in existing applications but also regain some of the market share, which it had lost to aluminium.

In next article we would discuss about the development of copper industry in India and its current scenario.


Equitymaster requests your view! Post a comment on "Copper: An introduction". Click here!

  

More Views on News

AVANTI FEEDS Announces Quarterly Results (1QFY21); Net Profit Up 14.1% (Quarterly Result Update)

Aug 28, 2020 | Updated on Aug 28, 2020

For the quarter ended June 2020, AVANTI FEEDS has posted a net profit of Rs 1 bn (up 14.1% YoY). Sales on the other hand came in at Rs 10 bn (down 12.6% YoY). Read on for a complete analysis of AVANTI FEEDS's quarterly results.

RELAXO FOOTWEARS Announces Quarterly Results (1QFY21); Net Profit Down 51.3% (Quarterly Result Update)

Aug 24, 2020 | Updated on Aug 24, 2020

For the quarter ended June 2020, RELAXO FOOTWEARS has posted a net profit of Rs 242 m (down 51.3% YoY). Sales on the other hand came in at Rs 4 bn (down 43.9% YoY). Read on for a complete analysis of RELAXO FOOTWEARS's quarterly results.

FORTIS HEALTHCARE 2018-19 Annual Report Analysis (Annual Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

Here's an analysis of the annual report of FORTIS HEALTHCARE for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of FORTIS HEALTHCARE. Also includes updates on the valuation of FORTIS HEALTHCARE.

THOMAS COOK INDIA 2018-19 Annual Report Analysis (Annual Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

Here's an analysis of the annual report of THOMAS COOK INDIA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of THOMAS COOK INDIA. Also includes updates on the valuation of THOMAS COOK INDIA.

MSTC IPO: Should You Bet on This State-Run E-Commerce Player? (IPO)

Mar 13, 2019

Should you subscribe to the IPO of MSPC Limited?

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS