- Centre removes 2.5% concessional BCD on scrap imports
- Copper scrap prices likely to soften, supply may increase
India’s domestic copper armature prices were assessed at INR 766,000/tonne (t) ex-Delhi, reflecting a 2% increase w-o-w. Similarly, copper motors mix scrap prices rose 3% w-o-w to $1,180/t, tracking London Metal Exchange (LME) tags, which stood at over $9,304/t, up by $170/t w-o-w.
Secondary continuous cast rods (CCR) (99.90%) were assessed at INR 818,000/t ex-Delhi, a 2.3% increase w-o-w. Meanwhile, primary CCR prices rose by 1.5% w-o-w to INR 835,000/t.
Demand for raw materials was moderate. However, shortages of some higher grades were reported.
In the FY’26 Union Budget, the Centre removed the 2.5% concessional basic customs duty (BCD) on copper scrap imports, a move that will potentially boost the prospects of domestic units. The country imported 0.32 mnt of copper scrap in CY’24 as compared to 0.31 mnt in CY’23. The previous Budget had reduced the import duty from 5% to 2.5%.
The removal of the 2.5% BCD on copper scrap imports in Budget FY’26 is expected to benefit downstream industries by decreasing raw material costs. With import duties now nil, copper scrap prices are expected to soften, and supply will potentially increase. This move will also help enhance manufacturers’ competitiveness, allowing them to stabilise input costs and potentially boosting demand in the domestic market.
A source highlighted, “India is now a more attractive market for global exporters. Lower import costs may encourage suppliers to redirect shipments to India, increasing overall availability. However, the actual impact will depend on global demand-supply conditions, logistical factors, and price competitiveness relative to other markets.”
Global copper market overview
China’s copper shipments to the US touched 66,000 t in 2024, making up less than 5% of its total exports. Meanwhile, China imported 2.25 mnt of copper scrap, with 440,000 t from the US. Importers delayed purchases amid tariff concerns, but China has excluded copper from recent countermeasures, keeping trade possibilities open.
Many fear Trump’s unpredictable policies may lead to higher tariffs. However, upcoming talks between Trump and China raise hopes for a potential resolution.
Recent deals
- Copper Druid scrap (high-grade) from Australia was sold at 92% of LME to CFR Chennai.
- Brass Honey (2% attachment) from Australia was traded at 64% of LME.
- Copper motors mix scrap from the US was transacted at $1,170/t CIF Mundra.
Outlook
The removal of the basic customs duty on copper scrap imports is expected to exert downward pressure on domestic prices in the near term due to improved supply conditions. However, with new manufacturing plants coming online and ongoing capacity expansions, domestic demand is poised to rise, potentially driving prices higher again in the long run.
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