INTRODUCTION

APPLICATIONS

DEMAND AND SUPPLY

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Copper (chemical symbol - Cu) is a malleable and ductile metallic element that is an excellent conductor of heat and electricity. It is also corrosion resistant and antimicrobial.It stands at the third place after steel and aluminium, in the context of consumption.Copper is an important contributor to the national economies of mature, newly developed and developing countries.

Copper is one of the most recycled of all metals. It is our ability to recycle metals over and over again that makes them a material of choice.

The global demand for copper continues to grow. The world’s refined copper usage has surged by around 300% in the last 50 years, owing to expanding sectors such as electrical and electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products. Copper's chemical, physical and aesthetic properties make it a material of choice in high technology applications. Since copper is bio-static, that is bacteria does not grow on its surface, it is also used in air conditioning systems, and as an anti-germ surface in hospitals.

In 2011, world’s copper mine production continued to underperform with respect to capacity, and remained at the 2010 level of 16.005 million metric tonnes (MMT).

= In 2011, the global refined copper production was 19.630 MMT, up from 18.998 MMT in 2010. The global refined copper consumption was 19.988 MMT, compared with 19.375 MMT in the previous year.

= On a regional basis, refined copper production increased in Africa (11%), Asia (6%), Europe (4.5%) and Oceania (12.5) but decreased in the Americas (-3.5%)

COPPERCOPPER

Source : Brook Hunt — A Wood Mackenzie Company

World Refined Copper Production World Refined Copper Consumption

Source: ICSG, CRU

The Multi Commodity Exchange of India Limited (MCX) is a state-of-the-art, demutualised, electronic commodity futures exchange that facilitates online trading, and clearing and settlement of commodity futures transactions, providing a platform for risk management. MCX offers trading in more than 40 commodity futures contracts across segments including bullion, ferrous and non-ferrous metals, energy, agricultural and agri-based commodities.

(in thousand MT)(in thousand MT)

55%

19%

11%

7%3%

5%

Wire Rod

Alloys

Tube

Plate, Sheet & Strip

Rods, Bars & Sections

Others

34%

31%

13%

13%

9%

Electrical & Electronic

Construction

Transport

Machinery

Consumer Products

Global Copper Consumption by first-use Global Copper Consumption by end-use

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2008 2009 2010 2011 2012*

Oceania

Europe

Asia

America

Africa

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2008 2009 2010 2011 2012*

Oceania

Europe

Asia

America

Africa

MCX is a leading

commodity exchange in India, with a

market share of 87%*

(Q3 FY 2012-13)*In terms of the value of commodity

futures contracts traded (Source: Data maintained by FMC)

For private circulation only

INDIAN SCENARIO

GLOBAL SCENARIO

FACTORS INFLUENCING THE MARKET

IMPORTANT GLOBAL EXCHANGES

= In 2012, India's production of refined copper is 689,312 MT, which is around 4% of the total world production.

= Sterlite Industries, Hindalco, and Hindustan Copper are three major producers of copper in India. From the status of a net importer, India is emerging as a net exporter of copper on account of a rise in the production of copper.

= Electric and electronic products industry has become India's largest copper consuming sector, accounting for 36% of the total Indian copper consumption. Telecom is still India's second largest copper consuming sector, accounting for 20% of the total Indian copper consumption

= Growth in refined copper usage has been especially strong in Asia, where demand has expanded more than five-fold in less than 30 years.

= Major refined copper exporting countries are Chile, Zambia, Japan, Russia and Peru, while major refined copper importing countries are China, USA, Germany, Italy and Taiwan.

= Copper prices in India are fixed on the basis of the rates that rule in the international spot market, and

Indian Rupee and US Dollar exchange rates.

= Economic events such as the national industrial growth, global financial crisis, recession and inflation affect metal prices.

= Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, all affect metal prices.

= Trade policies set by the Government (implementation or suspension of taxes, penalties, and quotas) affect supply as they regulate (restricting or encouraging) material flow.

= Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.

= As societies develop, their demand for metal increases based on their current economic position, which could also be referred as ‘National Economic Growth Factor’.

Exchange Product Lot Size IST

LME Grade A Cathodes 25 MT 6:30 to 00:30*17:10 to 22:40**

Shanghai Futures Standard Copper 5 MT 06:30 to 9:00 Exchange (SHFE) Cathode 11:30 to 13:30

COMEX Grade 1 Electrolytic 25,000 pound 18:00 to 17.15*** Copper

# MCX Grade 1 Electrolytic 1 MT 10:00 to 23:30 (Monday- Friday)Copper 10:00 to 14:00 (Saturday)

www.mcxindia.com* LME select ** LME Ring timing (Start time:- Ring session, End time - Kerb Trading) *** ET: NY Time - electronic trading, #: Day light timing 10:00 to 23:55 (Winter)

Leading Exporters - 2011Refined Copper Leading Importers - 2011Refined Copper

Source: ICSG

Globally, MCX is No.1 in gold

and silver, No.2 in

natural gas, and No.3 in crude oil*

*In terms of the commodity futures contracts traded during CY 2011 (Source: Websites of exchanges

and FIA data)

20%

8.3%

5.4%

4.5%

4.0%3.3%3.0%3.0%2.9%2.5%

43%Chile

Germany

Japan

Zambia

China

Russian Federation

Rep. of Korea

Poland

Belgium

Australia

Other Countries

25%

7.2%

7.0%

5.8%3.9%3.5%3.3%2.7%

2.6%2.4%

37%

China

Germany

USA

Italy

Other Asia, nes

Rep. of Korea

France

Turkey

Thailand

MalaysiaOther Countries

www.mcxindia.com

Source: MCX R&D

Source: Bloomberg

LME Copper 3 Month Price Vs LME Stock

Pric

e $

/ kg

Stoc

ks in

MT

Source: Bloomberg

MCX Correlation - 99.76%Copper Near Month & LME Cash

0

50000

100000

150000

200000

250000

300000

100

150

200

250

300

350

400

450

500

Volume (MTs) Open Interest (MTs) Price

Apr

-08

Jun-

08Au

g-08

Oct

-08

Dec

-08

Feb-

09A

pr-0

9Ju

n-09

Aug-

09O

ct-0

9D

ec-0

9Fe

b-10

Apr

-10

Jun-

10Au

g-10

Oct

-10

Dec

-10

Feb-

11A

pr-1

1Ju

n-11

Aug-

11O

ct-1

1D

ec-1

1Fe

b-12

Apr

-12

Jun-

12Au

g-12

Oct

-12

Dec

-12

Feb-

13

OI &

Vol

in M

Ts

Pric

e in

` /

kg

0

2000

4000

6000

8000

10000

12000

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000COMEX COPPER LME COPPER SHFE COPPER LME PRICE

Jan-

08M

ar-0

8M

ay-0

8Ju

l-08

Sep-

08N

ov-0

8Ja

n-09

Mar

-09

May

-09

Jul-0

9Se

p-09

Nov

-09

Jan-

10M

ar-1

0M

ay-1

0Ju

l-10

Sep-

10N

ov-1

0Ja

n-11

Mar

-11

May

-11

Jul-1

1Se

p-11

Nov

-11

Jan-

12M

ar-1

2M

ay-1

2Ju

l-12

Sep-

12N

ov-1

2Ja

n-13

0

2000

4000

6000

8000

10000

12000

0

50

100

150

200

250

300

350

400

450

500

MCX LME

Jan-

07A

pr-0

7Ju

l-07

Oct

-07

Jan-

08A

pr-0

8Ju

l-08

Oct

-08

Jan-

09A

pr-0

9Ju

l-09

Oct

-09

Jan-

10A

pr-1

0Ju

l-10

Oct

-10

Jan-

11A

pr-1

1Ju

l-11

Oct

-11

Jan-

12A

pr-1

2Ju

l-12

Oct

-12

Jan-

13

` / k

g

$ / M

T

MCX reaches out to over

1,770 cities and towns in India

through 3,46,000+

trading terminals (including CTCL)

(as of Q3 FY 2012-13)

MCX Copper Volume & Open Interest

www.mcxindia.com

IMPORTANT WEB SITES

www.icsg.org | www.copper.org | www.woodmacresearch.com | www.world-bureau.com |

http://minerals.usgs.gov | www.metalbulletin.com | www.basemetals.com | www.metalprices.com

Symbol COPPER COPPERM

Description COPPERMMMYY

Trading period Monday through Saturday#Trading session Monday to Friday: 10:00 am to 23:30

Saturday:10:00 am to 14:00

Contract listing As per contract launch calendar

Expiry date Last day of the contract month

Trading unit 1 MT 250 kgs

Quotation/base value 1kg

Tick size 5 paise per kg

Maximum order size 70 MT

Daily price limit 4%

Initial margin Minimum 5% or based on SPAN, whichever is higher

Additional and/or In case of additional volatility, an additional margin (on both buy side and Special margin side) and/or special margin (on either buy side or sell side) at such

percentage, as deemed fit, will be imposed in respect of all outstanding positions.

Maximum allowable For individual clients: 5,000 MT;

For a member : 25,000 MT or not more than 15% of the market-wide open position, whichever is higher.

Delivery logic Both option

Delivery center Within 20 Km outside Mumbai octroi limit.

Delivery unit 9 MT with tolerance limit of +/– 1% (90 kg)

Due date rate (DDR) Due date rate is calculated on the last day of the contract expiry, by taking calculation the international spot price of Copper and multiplying by Rupee-US$ rate as

notified by the Reserve Bank of India on that particular day.

Note: Please refer to the exchange circulars for the latest contract specifications and delivery and settlement procedures.

CONTRACT SPECIFICATIONS OF COPPER AND COPPER MINI

open position

#: Day light timing 10:00 to 23:55 (Winter)

MCX is the first commodity exchange in

India to launch mini futures contracts in

various commodities

09

04

13

Multi Commodity Exchange of India LimitedExchange Square, Suren Road, Chakala, Andheri (East), Mumbai 400 093 | Tel. no.: +91-22-6731 8888 | Email: info@mcxindia.com | Website: www.mcxindia.com

Customer Support: +91-22-6649 4040 | To get the latest futures prices on mobile: visit http://m.mcxindia.com or sms “MCX <Commodity name>” to 58888