Indian copper producer Sterlite Industries (India) Ltd. raised cathode prices for the second straight month, resisting a global decline, as the rupee weakened and optimism grew demand will revive.

The company increased prices by 0.6% to INR 431,199 (USD 8,101) a metric tonne effective January 1. Copper fell 3.6% last month on the benchmark London Metal Exchange, while the Indian rupee fell 1.6% against the dollar.

Copper demand may climb as government power and construction projects are revived in the last quarter to meet deadlines for the financial year ending March 31. The rise in manufacturing indexes in China and India and an increase in confidence among US consumers last month are likely to boost sales of metals, including copper.

Mr Bhavesh Chauhan an analyst at Angel Broking Ltd in Mumbai said that “The demand is alright so far and Sterlite should be able to sell whatever it produces. The falling rupee has boosted the landed cost of copper and that probably prompted a price increase.”

The unit of Vedanta Resources Plc which sets prices each month based on the average LME price the previous month, had cut prices by 9.5% in November.

(Sourced from Bloomberg)