"The price reduction is in line with the LME prices. It will not have any impact on the bottomline of the company. The prices are expected to stabilise at this level, " said Sterlite Industries director (finance) Tarun Jain.

The producers have brought down the price of continuous cast rods (CC rods) by Rs 3,000 per tonne to Rs 117,000 and cathode prices by Rs 3,000 per tonne to Rs 110,000.

Recent fall in the London Metal Exchange (LME) trend and lack of demand have prompted the price cut, a dealer at a private copper producer said.

LME price dropped by $100 per tonne in the last three days, he said. On October 11, three month LME copper futures closed at $1,666 per tonne, down $24 its previous close.

LME drop has been partly due to falling oil prices, which continued to be punished by speculators amid signs of output indiscipline in the Organisation of Petroleum Exporting Countries.

Both private producers are offering a discount of Rs 3,000 per tonne for CC rod on orders above four tonnes and Rs 2,000 per tonne on purchases of above 50 tonnes of copper cathode.

Earlier in the month, the producers had increased selling prices of CC rod by Rs 3,000 per tonne and by Rs 2,000 per tonne of cathode on firm trend on the LME.

In July, the three companies raised prices by Rs 1,000 a tonne for continuous cast (CC) rods. The revised price now stands at Rs 118,000 per tonne for CC rods. Prices of CC rods had already been hiked by an approximate Rs 12,500 a tonne.

The upward revision of prices in last July marked the start of producers setting prices every week. Earlier, producers used to set prices every fortnight.