Copper Commodity Trading

Did you know that copper was the first mineral extracted from the earth?

Since its earliest discovery, copper has been invaluable to mankind. At first, it was used to make utensils, weapons and tools. Later, as an alloy, it was instrumental in bringing about the Bronze Age. Today, it is one of the largest consumed metals in the world, following only steel and Aluminium.

The most important use of copper is in electrical wiring. This metal is very ductile, highly resistant to corrosion and one of the best conductors of electricity. It is also widely used in the production of construction material, telecommunications and alloys.

About 48% of total copper consumption is attributed to construction, 24% to engineering, 17% to electrical, and the remaining to transportation and other industries. Besides, it forms the backbone of several technological advances, the two biggest being telegraphic communications and electricity.

Copper price depends upon various factors, including industrial growth, global economy, trade policies and geopolitical events. Besides, events like construction of new infrastructure, discontinuance of historical uses, supply disruption, etc. also affect copper prices.

The metal is traded as a commodity mainly on London Metal Exchange (LME), Chicago Mercantile Exchange (CME), Shanghai Futures Exchange (SHFE) and Multi Commodity Exchange of India (MCX), LME is used as a benchmark across the globe. Copper is also one of the highest traded commodity on Indian commodity bourses.

What makes copper a wise investment?

Copper is a core component for the manufacturing of electronics and construction material. It is an industrial metal with wide usage and has global appeal.
The rapid industrialization and electrification in emerging economies will translate into increased demand for copper.
Copper is also considered a leading indicator of health of global economy.

Why is copper commodity a wise investment for an Indian trader?

The diverse uses of copper make the metal significant for the progress of industry, information technology and electrification.
Asia already consumes about 50% of the world's copper. With growing urbanization and industrialization in China and India, the demand is expected to rise even further.
The developing countries are investing significant amounts in infrastructure sector boosting demand for copper. This is expected to make copper price in India upbeat in the short term and strong in the long run.
MCX copper price can be used as reference for Indian traders. As the commodities market grows and per-capita income rises, demand for industrial metals will remain higher.

How can Kotak Commodities help me invest in copper?

The Kotak Commodity Gateway Account will give you access to research and trading facilities to conduct copper trading in India. While SMS alerts and Call & Trade will provide you regular updates on copper prices in India, our expert research reports will help you make informed decisions. Our brokerage rates are attractive. The best part is that our Gateway is a lifetime free trading account!

To learn more about Kotak Commodity Gateway Account, please click here.

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