Reuters reported that Indian copper industry is battling high price volatility with several smaller traders and producers being wiped out. A top official at Bombay Metal Exchange said that London Metal Exchange copper prices have more than doubled in 2009 on the back of Chinese stockpiling and hopes of an early economic recovery. Mr Surendra Mardia president of the Bombay Metal Exchange said that "Companies are cautious, they are not investing new money not thinking of expansion, no new players are entering, sentiment is still very cautious. They are just sticking to their current capacity. Small players are finding it difficult given the volatility in prices they are struggling." He expects the volatility to continue in the red metal, used in housing wires, refrigerators and other electronics with prices seen at USD 6,000 to USD 7,000 till mid January when miners re negotiate contracts.

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