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Commodity Markets


From this section onwards, we will discuss a few popular commodities that fall under the classification of base metals. So, first, let us start with Copper. 


Copper (chemical symbol - Cu) is a malleable and ductile metallic element that is an excellent conductor of heat and electricity. It is also corrosion-resistant and antimicrobial. It stands at the 3rd place in the context of world consumption after steel and aluminum.


Copper is highly traded in the market, and is one of the most recycled of all metals. It is our ability to recycle metals over and over again that makes them a material of choice.


Factors Affecting Copper:


  1. Economic events such as national industrial growth, global financial crisis, recession, and inflation all affect copper prices.
  2. Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures, supply disruption, accident, strike, and so forth), or industry restructuring, all affect copper prices.
  3. Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) material flow.
  4. Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.
  5. There is also a national economic growth factor. Societies, as they develop, demand copper in a way that depends on their current economic position.
  6. Natural calamities such as Earthquakes/Floods which directly affect the production capacity of the mines which extract copper.

Copper Price Movement:

Trading and Conversion:

  • Unit in which LME Copper is quoted as - USD/metric tonne
  • Symbol: COPPER
  • Trading unit: 1 MT
  • Maximum order size: 70 MT
  • Tick size: 5 paise per kg
  • Conversion factor: 1 kilogram = 0.001 metric tonne
  • Conversion Calculation: LME Copper price * 0.001 * INR Currency
  • Example: LME Copper future stands at 4440 and INR Currency is at 49.6125, the price for 1 kilogram = ₹4440 * 0.001 * 49.6125
    = ₹220.28/kg
  • Copper Mini
    * Symbol: COPPERM
    * Trading unit: 250 kgs
    * Maximum order size: 70 MT
    * Tick Size: 5 paisa per kg

Copper trades on the MCX platform. 


The timing of the exchange is Monday toFriday: 09:00 A.M. to 11:30 P.M.

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Units 13/17