THE RISE in copper demand and prices is hitting the hip pockets of residents and companies alike in the Pakistani province of Lahore, where one-rupee coins are being melted down to make wire.
The coins are 70% copper, 24.5% zinc, and 5.5% nickel. They are being taken to nearby cities, where electrical cable manufacturers extract the metals out of them. 300 coins ($4.55) are needed to create one kilogram of copper.
On the other hand, the Pakistani market prices for a kilogram of scrap copper is 500 rupees ($7.58), while the metal itself sells for up to 800 rupees ($12.13) per kilogram.
The global surge in demand for copper and iron has led to the practice. According to the companies, although the metals found in the coins are low quality, they can still be used for wires.
Some companies have taken to directly moulding the coins they get from vendors and banks into cables. The substandard materials mean these cheap cables are prone to short circuiting, and consume more electricity than standard products.
The Pakistani Ministry of Finance says it will be withdrawing the one-rupee coin and replacing it with nickel versions to eliminate the problem.

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