y the State Government in the Mining Lease. The rates <strong>of</strong> surface rents are specified by the State Governments and hence vary from state to state. 5.3.4 Future Forecast <strong>of</strong> <strong>Copper</strong> Prices The unprecedented volatility in copper market makes it very difficult to forecast the future price range. However analyst worldwide forecast the prices. The same are given in Annexure: 5-IV. 94
Chapter 6. Demand and Supply Forecast for demand and supply <strong>of</strong> a commodity or mineral has always been an intricate and interesting part. The present <str<strong>on</strong>g>Market</str<strong>on</strong>g> <str<strong>on</strong>g>Survey</str<strong>on</strong>g> <strong>on</strong> copper metal is a maiden attempt in respect <strong>of</strong> metals. All the previous <str<strong>on</strong>g>Market</str<strong>on</strong>g> <str<strong>on</strong>g>Survey</str<strong>on</strong>g>s were mostly covered the industrial minerals as well as metallic minerals such as ir<strong>on</strong> ore. The very nature <strong>of</strong> use <strong>of</strong> metals, especially copper, starting from metallic use in different forms such as wires, bars, sheets, pipes, plates and in manufacture <strong>of</strong> chemicals and alloys made it more challenging for arriving at an acceptable forecast. In the following paragraphs the Internal Demand (present and future) <strong>of</strong> copper metal has been attempted. Demand-Supply analysis <strong>of</strong> copper metal in the country has been carried out. 6.1 INTERNAL DEMAND 6.1.1 Present Demand i) Reported C<strong>on</strong>sumpti<strong>on</strong> <strong>Copper</strong> is an important metal as far as electrical industry is c<strong>on</strong>cerned. The electrical industry has to some extent replaced copper with aluminium in transmissi<strong>on</strong> <strong>of</strong> electricity in the form <strong>of</strong> transmissi<strong>on</strong> lines, underground cables, as well as wires for household fittings. However, the durability <strong>of</strong> copper, c<strong>on</strong>ductivity, ductility and l<strong>on</strong>g life made copper the most sought after material in motor winding, power cables and wires and electr<strong>on</strong>ic products. <strong>Copper</strong> is also used in building and c<strong>on</strong>structi<strong>on</strong> industry, transport, ordnance and in making copper compounds. The industry wise c<strong>on</strong>sumpti<strong>on</strong> <strong>of</strong> copper is given in Table: 6.1 based <strong>on</strong> the data collected from c<strong>on</strong>suming industry <strong>on</strong> n<strong>on</strong>-statutory basis and hence the coverage is not complete. Table: 6.1- Industry wise C<strong>on</strong>sumpti<strong>on</strong> <strong>of</strong> <strong>Copper</strong> Metal, 2004-05 to 2008-09 (In t<strong>on</strong>nes) End use Industry 2004-05 2005-06 2006-07 2007-08 2008-09 Cable & Winding Wires 72,845 74,392 78,775 80,855 125,746 Semis & Alloys 41,391 42,625 52,716 50,724 41,129 Electricals 13,355 10,908 13,436 13,415 15,762 Auto Ancillary 2,754 5,597 3,731 3,539 3,023 Others 8,969 9,355 9,362 9,194 8,729 Total Metal (A) 139,314 142,875 158,019 157,727 194,389 Total Scrap (B) 35,936 70,320 74,052 74,702 73,358 Grand total (A+B) 175,250 213,196 232,071 232,428 267,747 95