Copper industry battling volatile market-trade body

MUMBAI, Nov 6 (Reuters) - 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.

London Metal Exchange copper prices have more than doubled in 2009 on the back of Chinese stockpiling and hopes of an early economic recovery.

"Companies are cautious, they are not investing new money, not thinking of expansion, no new players are entering, sentiment is still very cautious," the exchange's president Surendra Mardia told Reuters in an interview late on Thursday.

"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 $6,000-$7,000 till mid-January, when miners re-negotiate contracts. (Reporting by Swati Pandey and Siddesh Mayenkar; Editing by Prem Udayabhanu)