Finshots Daily Why doesn't India have copper ETFs?
17 snips
Mar 27, 2026 They explore copper as an economic barometer and recent price swings after geopolitical shocks. The conversation covers rising investor interest and India’s growing copper demand. Practical hurdles are highlighted: storage and logistics for physical funds, GST and tax issues, thin futures liquidity, and reliance on foreign benchmarks. They end by outlining what reforms would enable an Indian copper ETF.
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Why Copper Is Called Dr Copper
- Copper is a broad economic barometer because it's used across construction, manufacturing, autos, electrical gear and data centers.
- Its prices swing with demand and supply shocks, making it volatile after events like the US–Israel war with Iran reduced demand yet disrupted sulfur-linked supply chains.
Geopolitics Pushed Copper Prices In Two Directions
- Recent geopolitics pushed copper to an LME high then into a 10% drop as demand and supply moved in opposite directions.
- War raised energy costs (hitting demand) while disrupting sulfur transport (hitting supply), producing conflicting price forces.
India's Copper Demand Could Soar By 2050
- Demand for copper could surge with electrification and infrastructure; Niti Aayog forecasts India may need over 20 million tons by 2050.
- Domestic consumption is ~1 million ton today, driving policymakers to push mining investment to cut imports.