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OTHER METALS

All metals fall into one of two categories: ferrous or nonferrous. The main element of a ferrous metal is iron. A metal is still classified as ferrous even if it has less than 50% iron content, as long as it contains more iron than any other single metal. A metal is considered nonferrous if it contains less iron than any other metal. Cast iron, steel, and the various steel alloys are ferrous metals. Meanwhile, tin, zinc, silver, gold and many other metals utilized primarily for metal plating or as alloying elements are considered nonferrous. Many metals used in the fabrication of parts, such as aluminum, magnesium, titanium, nickel, copper and tin alloys, are also classified as nonferrous.

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is non-magnetic. National Aluminium Company Limited (NALCO). is highly resistant to most forms of corrosion. The global aluminium production which was 377. In India the electrical sector is the largest consumer of aluminium.3 lakh tonnes in 2011. Other valuable properties include high reflectivity and rapid heat dissipation.3% i. transmission and distribution of electricity.e. which is only one-third the weight of steel. which stems from its excellent and diverse range of physical. Madras Aluminium Company Limited (MALCO) and Vedanta Aluminium Limited (VAL).88 lakh tonnes in 2010. Aluminium.47 lakh tonnes aluminium in 2008.09 and 15. HINDALCO Industries Limited. 2008. capacitors. 2 . in terms of volumes used due to its versatility. The Global aluminium production is forecast to increase by about 16. Bulk of the Aluminium usage is in overhead conductors and power cables used in generation. India produced 13. as per CRU Monitor. non-combustible. Aluminium is used in switchboards.Key Players – Non Ferrous ALUMINIUM Aluminium is the most abundant metal in the earths crust. Bharat Aluminium Company Limited (BALCO).15 lakh tonnes respectively. coil windings. The primary aluminium industry in India consists of five producers viz. The metal is malleable and easily worked by the common manufacturing and shaping processes.81 lakh tonnes in 2009 got increased to 419. It ranks second. chemical and mechanical properties.Aluminium. to 488. next only to steel. non-toxic and impervious (hence used in the food and packaging industries) which is also a superb conductor of electricity. Out of these Companies.49 lakh tonnes and 411. VAL started its operations in April. only NALCO is in the Public Sector.24 lakh tonnes in 2009-10 which approximately was about 3. and many other applications as well.5% of world production. The world aluminium consumption in 2009 and 2010 was 343.

6 million at LME. It is expected that LME price of aluminium will remainbetween $ 2400 to $ 2600/ tonne in the remaining months of FY 2010-11. In FY 2010-11. It is anticipated that economic recovery along with the combined strong demand coupled with growth in demand in industrialized countries at 2-3 per cent a year would propel aluminium higher this year. the world aluminium price averaged around $1666/tonne. which was about 16% below the FY 2008-09 average price.350/tonne and $2. Supporting the prices was the vast amount of Aluminium metal tied up under cheap rent and financing deals where metal holders would make profits if the prices rise faster than storage costs.30 million tonnes in 2010. 3 .9 million tonnes. the average aluminium price upto Dec. mainly as a result of consumption falling faster than production and stocks increasing to end at over 4.500/ tonne in 2011 as a large stock overhang and a declining share of metal tied up in financing deals are expected to restrict further price surges. This indicates a capacity utilization of around 80% in 2010 compared to 75% in 2009. The decline in aluminium price in2009 was the largest annual decline on record.The price of aluminium fixed by the primary producers is generally aligned to the London Metal Exchange (LME) prices. Analysts forecast prices to average between $2. 2010 has been $ 2176/tonne which is around 17% higher than that of FY 2009-10. Aluminium still remains as the prime candidate for a bearish bet and the unwinding of inancing deals could be the key in this respect. In FY 2009-10. while production is 41. Global aluminium capacity is estimated at 50..

(Unit: Birla Copper) and M/s Sterlite Industries (I) Ltd. in turn. mint. Besides. plastic & fibre. PRICE OF COPPER Customs duty on imported copper had been reduced in phases from 35% in 2002-03 to 5% at present leading to a steep reduction in price. another private player viz. Sterlite Industries (I) Ltd. Till 1997. Copper is a very important element and the oldest known commodity in the world that directly affects the world's economy. physical and aesthetic properties make it a material of choice in a wide range of domestic. affected the profitability of domestic copper manufacturer. The balance demand was met through imports. which used to meet approximately 25-30% of India's requirement for refined copper. Telecommunication Cables. However. It is found in sulfide deposits (as chalcopyrite. Archaeological evidence demonstrates that copper was one of the first metals used by humans and was used at least 10. M/s Jagadia Copper Ltd.e. aluminum. etc. covellite). (Unit: Birla Copper) and M/s. a public sector enterprise under the Ministry of Mines.00. Their present annual capacities are 5. the scenario has changed drastically after coming of the other two primary producers of Copper in private sector namely M/s Hindalco Ind.00. carbonate deposits (as azurite and malachite). The capacity for production of primary copper in India has risen from a mere 47.000 tonnes from secondary route by M/s. Per capita consumption of copper in India is in the order of 0.000 years ago for items such as coins and ornaments in western Asia. The LME Cash Settlement Price (CSP) is the basis on which prices of copper products are declared by domestic producer. Copper is a critical metal being used in areas such as defence. which. bornite. the demand for copper minerals for primary copper production is met through two sources i. Continuous Cast Rod (CCR) plants of M/s TDT and M/s Finolex are based on imported cathode. Ltd.000 MT and 4.99. are based on imported copper concentrate. The indigenous mining activity among the primary copper producers is limited to only Hindustan Copper Limited (HCL). railways.COPPER Copper is a malleable and ductile metallic element that is an excellent conductor of heat and electricity as well as corrosion resistant and antimicrobial. The other primary copper producers in the private sector import the required mineral in the form of concentrate. and silicate deposits (as chrysycolla and dioptase) it is also formed as pure "native" copper.000 tonnes plant based on secondary route. At present. space programme. Regardless of competition from substitutes like iron. The domestic price of copper is linked to London Metal Exchange (LME) price.. chalcocite.500 tonnes per year till 1997 to 9. copper's chemical.000 MT of refined copper respectively. Manufacture of primary copper based on indigenous ores is characterized by high energy consumption because of low scale of operations and minimal automation. with the result that India is now a net exporter of refined copper. The plants of M/s Hindalco Ind. power cables. (formerly SWIL Ltd.) has started operating its 50. Copper consumption in a country is an indicator of its level of economic development. the only producer of primary refined copper was Hindustan Copper Limited (HCL). Copper ore mined from indigenous mines and imported concentrates. The installed capacity for refined copper production at its two integrated copper plants was around 47. The copper 4 .500 tonne per year. industrial and high technology applications.500 tonnes at present which also includes 50.50 Kg as compared to 10 Kg in developed nations. Ltd. Jagadia Copper Ltd. IndianCopper ores have low grade and large scale mechanization in the underground mines is rendered difficult due to the geometry of the ore body (narrow width and a flatter inclination).

Per capita consumption in India is in the order of 0. The demand again is primarily from the telecom.53 million tonnes of copper ore. Usage of copper in building construction. Electrical.000 tonnes respectively.056. There has been substantial reduction in demand of copper in telecom sector with increased application of Fibre optic cables and fast penetration of wireless communication through cell phones. the industrial situation has also improved in general indicating a hopeful position for the copper industry. Along with improvement in the LME copper price. International Copper Study Group (ICSG) expects world apparent refined usage in 2010 to increase by about 3. during 2008-09 and 2009-10.000 tonnes in 2008 and 18. power and infrastructural sector.11 would depend on the growth of the economy and LME price. 2008 on economic considerations. the LME average price of copper for the year 2010-11 has improved to US$ 7636 from the yearly average LME price of US$ 5864 in 2008-09 and US$ 6101 in 2009-10.04. 411. is slowly making inroads into the country. The known mineral resources for copper within the country are few with low grades of copper with the average metal content being in the region of a mere 1% and the precious metal content being very low.05% copper content as on 01.000 tonnes and 550. in place of cables and wirings made from high grade electrolytic tough pitch copper. which was importing part of its copper concentrate requirement for running Khetri smelter. applications are mostly of cables and wirings made from "Scrap recycled" (commercial copper) resulting in substantial electrical energy loss to the country without counting indirect losses and other costs due to failure of these wirings. As per the data of Indian Copper Development Centre (ICDC). During the present year. whereas. HCL has estimated reserves of approx. as prevalent in Western World. TRENDS IN COPPER CONSUMPTION Copper consumption in a country is an indicator of its level of economic development.50 Kg as compared to 10 Kg in developed nations. mainly in metro cities and industrial projects. the production and consumption of refined copper in 2010.8% from that in 2009. In the household wiring sector. TCRC (Treatment and Refining Charges) were also unfavourable. But unfortunately. 5 . there has been an improvement in the price situation. total world refined copper usage was 18. As per the assessment. The trend. This situation affected Indian copper producers in general.000 tonnes (provisional) in 2009. Electronics and Telecommunications sectors account for nearly 52% of copper usage in India. has started reversing and increased usage of copper in this sector is perceptible. aluminum conductors are widely used. with an average of 1.industry was adversely affected due to drastic fall in LME price in the year 2008-09 along with the economic slowdown in general. HCL. Wireless in Local Loop and DTH Telecasting. was forced to stop operation of Khetri smelter from December. Along with the drop in LME copper price. Till December'10. IMC-SRGC has reviewed and classified HCL's mineral reserves and resources in accordance with the Australian Joint Ore Reserves Committee (JORC)'s Code. However. however. HCL has access to over two-thirds of the copper orereserves in India. total domestic refined copper usage was approximately 538.2010.189. The Khetri smelter continues to be under temporary shutdown on the basis of economic considerations. Though the current global economic crisis has significantly reduced world refined copper usage levels. despite many advantages of using copper conductors.

As against this. During the year 2010-11 (upto June. the production of primary lead was 14144 thousand tonnes and that of zinc metal was 172739 thousand tonnes.LEAD & ZINC As per the data made available by the Indian Bureau of Mines (IBM). 2009-10 (provisional) and 2010.11 (provisional) (upto June. the production of zinc is more than its consumption in the country. However. the apparent consumption of lead was 79106 thousand tonnes and that of zinc was 158002 thousand tonnes in 201011 (upto June. 2010). 2010) is shown below :- 6 . 200809. Data relating to export/ import of lead and zinc and the data regarding apparent consumption/production of lead and zinc for the years 2007-08. 2010). there appears to be shortage of lead in the country as its production is less than its consumption. The exact details of demand and supply of lead and zinc are not maintained as Lead and Zinc are freely importable as per the import policy of the Government.

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Growth Drivers 1.  Industry Maturity The industry is pretty mature with sales and profits increasing at a steady rate because of the strong demand over the years. airport modernization and real estate development continue to attract huge domestic and foreign investments. 1) Increasing raw material costs (particularly coking coal) across steel. Also. Infrastructure and real-estate : Key infrastructure projects such as bridges and urban construction. Automotive sector: Sustained growth in India’s automotive sector is driving the demand for both steel and aluminium. 3. India is the world’s second-largest manufacturer of two wheelers and the fifth-largest manufacturer of commercial vehicles. 8 . These provide lucrative business opportunities for steel. raw materials account for the majority of operating costs. 4. zinc and aluminium producers. Risk Analysis  Cost Structure Considerable amount of investment has to be done on fixed assets like machinery. 2. Growth rate of the economy : India is growing at a steady rate and economy is suitable for rapid growth. Drivers/catalysts/events: 1) Domestic demand supply dynamics 2) Global prod re-starts and real demand strength 3) China FAI growth and subsequent demand outlook for commodities 4) Bulks pricing 5) Ally financing trade 6) India MOEF decisions Key issues / risks. infrastructure etc. railways. Power : The power sector accounts for a large share of the consumption of metals especially Aluminium. aluminum and zinc 2) Unwinding of the aluminum financing trade 3) Energy and transportation costs are increasing 4) Dollar is weakening and hence imports are becoming costlier. power projects.

It is subject to fluctuation in international prices which can either increase or decrease the demand.  Vulnerability to substitute products Every metal can be nearly substituted by other metals provided they suit the purpose. Cyclicality The industry is moderately affected by cyclicality factors much as the demand increasing steadily with time.  Dependence The industry is exposed to currency risk and any movement can either increase or dent the profits. plastic & fibre.  Profitability The industry is profitable and it has been consistent as it is backed by strong demand.g. to formulate a National Mineral Policy. which is applicable to all minerals. The Hoda Committee. The domestic price is also dependent on the fluctuation in price of international markets. mining is regulated by the Mines and Minerals (Regulation and Development) Act (MMRDA). Copper faces competition from substitutes like iron. For e. The GoI has also set up a high-level panel. FDI up to 100 per cent is permitted.  Effects of regulation In India. 9 . 1957. aluminum. FDI up to 100 per cent is permitted under the automatic route to explore and exploit all non-fuel and non-atomic minerals in India. It was also affected very much during the economic crisis. in a move to better regulate the sector. However it is competitive and competition can bring down the profit margins.