- Steady inquiries for higher grades boost domestic market
- US’s 50% copper import tariff poses indirect risks for India
Indian copper scrap prices moved down w-o-w, amid a drop in London Metal Exchange (LME) futures. Copper armature scrap was assessed at INR 811,000/tonne (t) ex-Delhi, down by INR 9,000/t w-o-w, while motors mix stood at $1,150/t, down by $40/t w-o-w.
Copper prices on the London Metal Exchange (LME) remained firm near a three-month high, supported by persistent supply constraints and growing uncertainty over potential US import tariffs. As of early trade on 3 July, three-month copper held steady at $10,005/t, close to its highest level since late March. However, LME futures decreased by $250/t w-o-w to $9,620/t compared with last week’s $9,865/t.
The US’s decision to impose a 50% tariff on copper imports is expected to weigh on global demand and price stability, posing indirect risks for India. Although India exported only 16,000 t to the US in 2024 (about 9% of its copper exports), the broader impact could come from reduced international buying and heightened market volatility, potentially affecting Indian exporters.
Secondary continuously cast rods (CCRs) (99.90%) were assessed at INR 870,000/t ex-Delhi, down w-o-w. Meanwhile, primary CCR prices stood at INR 900,000/t, stable w-o-w.
Domestic market
Domestic copper market sentiment turned more positive, as demand showed signs of strengthening despite the ongoing monsoon. Trading activity picked up slightly, with steady inquiries for high-grade material supporting market confidence.
Northern Indian producers, who had seen moderate activity earlier, are now witnessing improved buying interest in Q3. While cash flow constraints remained a concern, strong movement in high-grade copper- especially in key consumption hubs – helped sustain overall momentum.
Imported market
Firm demand in Pakistan pushed copper motor scrap bids nearly $80-100/t higher than Indian levels (~$1,150/t), prompting exporters to divert material there. This shift tightened supply in India, with limited recent inflows.
Tight refined copper cathode supply drove renewed interest in high-grade copper scrap across global markets. Buyers who had previously stayed away from the scrap segment actively returned, with Millberry emerging as the preferred substitute. This shift tightened availability and pushed offers higher in key consumption hubs such as India, Southeast Asia, and the Middle East.
Current offer levels reflect this momentum:
- Millberry: 98-98.6% of 3M LME
- Candy Berry: 96.8-97.7% of 3M LME
- Birch Cliff: 94-95% of 3M LME
Overall sentiment remained firm, supported by steady global demand and constrained supply of both primary and secondary refined copper.
Outlook
The Indian copper scrap market is likely to remain range-bound in the near term as monsoon-led demand softness offsets firm global interest. Exporters may continue diverting material to higher-paying markets like Pakistan, the Far East, and China, tightening domestic supply. While CCR rod prices should stay stable, high-grade scrap such as Millberry may face upward pressure due to strong global demand and limited availability.
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