The Hindu Business Line : Copper wire bar may rule lower

DOMESTIC prices of copper wire bar are expected to rule lower in the next few days on expectation that the forthcoming Budget may slash customs duty on copper imports to the extent of five per cent.

Weak overseas markets also contributed to the downturn. The customs duty on copper metal is at present 15 per cent.

Copper wire bar prices in Mumbai declined to Rs 208 per kg from a record high level of Rs 211 per kg quoted early this month on continued selling pressure from stockists and weak LME trend as well.

"A few stockists were sellers as they feel the Government may reduce customs duty by 5 per cent,'' a director of Bombay Metal Exchange and a metal trader said.

"Overall demand, except telecommunication sector, is restricted. Everybody is waiting for the Budget. Stockists are not also keen to build fresh stocks," he said.

"Nobody wants to take fresh positions till Budget," an analyst said.

"Copper prices may hover around Rs 200-210 per kg level on restricted demand," he said.

At the London Metal Exchange (LME), copper grade `A' prices fell by nearly $100 per tonne to $3,133 per tonne in the last few days on some fresh liquidation by producers.

Also, the LME inventories increased to 51,000 tonnes from 43,475 tonnes last week.

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