Commodity reported that surging global prices for base metals is unlikely to impact the India’s copper and aluminum demand as the country’s production is projected to offset the annual demand.
India’s annual consumption of copper remains around 500,000 tonnes against its annual production of 550, 000 tonnes and the country needs nearly 850,000 tonnes of aluminum while it produces around 1.53 million tonnes per year.
According to analysts, India's aluminum consumption is expected to grow by 5% annually in the next 2 years while copper demand is projected to rise 10% to 15% each year. Copper rallied strongly yesterday, climbing above USD 8,850 per tonne. Very good two way volumes were seen m with over 19,000 lots trading on LME Select. The Cash 3 month spread also moved into backwardation, reaching the tightest level in over a year.
In this regard, it’s worth pointing out that the latest LME data shows the presence of 2 dominant position holders in the 30% to 39% band of cash warrants and a dominant position holder in the 30% to 39% and in the 40% to 49% band of tom warrants.
With the tin market already having to deal with lower production levels from Indonesia, its worth highlighting the impact of US regulations around the trade of material from conflict zones. The regulations come into effect from April 2011 with ITRI, the industry body for tin, saying that that the market will likely refuse to accept untraceable material form the DRC after this date.
（Sourced from Commodity Online）
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