Launch of Copper Futures (2500 Kilograms) July, August, September and October 2019 Futures Contracts with modifications
Launch of Copper (2500 Kilograms) July
Contract Specifications of Copper
✔ Copper, the best non-precious metal conductor of electricity, has exceptional strength, ductility, and resistance to creeping and corrosion to make it the preferred and safest conductor of electrical wiring in buildings. Economic, technological, and societal factors influence the supply and demand of copper. Land-based resources are estimated at 1.6 billion tonnes of copper, and resources in deep-sea nodules are estimated at 0.7 billion tonnes. Worldwide, approximately one-third of all copper consumed is recycled copper.
✔ Copper is produced in more than 25 countries today. Because of global dispersion of copper production, the risk of disruption in global supplies is low. On the other hand, because of its importance in construction and power transmission, any disruption in supplies will have a major effect on the economy.
✔ Producers, exporters, marketers, processors, and SMEs with exposure to copper can manage their price risks by hedging. When uncertainty looms large, modern risk management techniques and strategies, including market-based risk management financial instruments like ‘Copper Futures’, offered on the MCX platform can improve efficiencies and consolidate competitiveness through price risk management. The importance of risk management thus cannot be overstated.
✔ In world metal consumption, copper ranks third after steel and aluminium. It is a product whose fortunes directly reflect the state of the world’s economy, hence also dubbed as Dr Copper.
