Due to the increasing demand for copper globally and the opening of the lockdown, its use has increased in the industry. Due to which its prices are seeing a rise. It may increase further in future.
The effect of the rise in copper prices
Due to the Corona period, the country’s economy was greatly affected, due to which like many other commodities, there was a huge decline in copper. However, due to the improving situation in the global economy and increasing consumption of copper in China, its demand increased significantly. Due to which its prices have gone up. Electronic items can also become expensive due to the increase in the price of copper.
65% of copper is used in electrical equipment, 25% in construction, 7% in transport and 3% in other sectors. According to market experts, the price of copper may increase further in the coming times, in such a situation, electronic items like water motor, cooler, mixer grinder, wiring, heating elements, motors, renewable energy, internet lines etc. May be.
Because of this, the price of copper increased
In the general budget, the government had reduced the import duty on copper scrap from 5 per cent to 2.5 per cent. After the outbreak of Corona subsided, there was a rapid increase in industrial production, copper was used on a large scale in industries. In such a situation, its demand is continuously increasing. Apart from this, the country’s Chile’s announcement of imposing a tax of up to 75 percent on the mining of copper has also led to a jump in its prices. It is known that Chile is a country producing about a quarter of the global copper.
Price fell last year
Due to the corona epidemic, there was a huge fall in copper in March 2020. The price of copper on MCX had fallen to Rs 335 per kg in March 2020. It closed at Rs 594.15 on 31 December 2020. At present, copper for June delivery on MCX is trading at Rs 738.70 per kg. In the Indian market last month, the price of copper had gone up to Rs 776.55 per kg in futures trade. But after the complete opening of the lockdown in the country, its price may increase.
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