India: Imported copper scrap tags increase as LME prices near multi-year highs; domestic supply tightens

• Slow post-monsoon inflows, limited yard sales cap domestic supply
• Demand remains active ahead of smelters’ Diwali production runs

Imported copper scrap prices in India saw an uptrend w-o-w, following a gain in London Metal Exchange (LME) futures, which hit a 16-month high and neared all-time high levels. Parallelly, domestic copper scrap prices increased w-o-w amid limited availability.

According to BigMint’s assessment, Birch Cliff scrap was assessed at $10,030/tonne (t), up by 5% w-o-w, while US motors mix stood at $1,200/t (both CFR Mundra), range-bound w-o-w.

LME copper nears record high amid global supply concerns

Three-month copper prices on the LME climbed to $10,760/tonne, marking a new high for 2025 and the strongest intraday level since May 2024, when the all-time record of $11,105/tonne was reached. The rally was driven by ongoing supply disruptions in key mining regions such as Indonesia and Chile, which have heightened fears of market tightness. However, macroeconomic uncertainty across Europe and Asia limited further price gains, keeping the market cautious despite strong fundamentals.

European market scenario

The European copper scrap market maintained a stable tone this week, with healthy liquidity and consistent trading activity across major regions. Market participants highlighted that transaction prices strengthened in line with higher LME copper values, bringing stability to payables after recent fluctuations.

Prices (CIF China)

• Millberry (EU): 98-99% LME
• Birch/Cliff (EU): 91.5-92% LME

Supplies of clean grades have improved slightly due to better collection flows, though high-grade scrap remained limited, particularly in northern Europe. Refiners and smelters continued to prioritise prompt, high-purity cargoes, which led to a mild premium in the market.

Overall, sentiment remained steady to firm, underpinned by resilient downstream demand, stable LME prices, and cautious selling interest from yards that remain reluctant to release large volumes at current payables.

Indian market updates

The Indian copper scrap market held firm this week, supported by rising LME prices and limited domestic availability. Import offers for Birch/Cliff and Berry from the Middle East and the US remained on the stronger side, with sellers quoting higher levels in line with global bullish sentiment and restricted free-on-board supply.

Offers for Australian-origin copper scrap this week include Birch/Cliff at 90% of LME (CIF Chennai), Candy Berry at 97% of LME (CIF Chennai), and Brass with 2% attachment at 62% of LME (CIF Mundra). Additionally, Meatballs with 2% attachment were traded at $1,950/t (CIF Mundra).

Domestic grades such as copper Armature and Berry Candy witnessed active demand across western and northern markets, with prices rising w-o-w as smelters replenished stocks ahead of Diwali production runs. Traders in Gujarat, Maharashtra, and northern regions highlighted firmer buying interest from wire rod and cable manufacturers, though smaller recyclers remained cautious amid elevated prices.

Domestic copper armature was assessed at INR 895,000/t ex-Delhi, up by 2.8% w-o-w. Copper primary CC wire rods rose to INR 1,000,000/t ex-Delhi, up by 3.6% w-o-w, while secondary CC wire rods were assessed at INR 955,000/t ex-Delhi, gaining 3.4% w-o-w.

Overall, clean scrap supply continues to be tight, constrained by slower post-monsoon inflows and measured selling by yards, keeping the market supported at higher levels.

Outlook 

Copper scrap prices are expected to remain firm in the near term, supported by strong LME levels, ongoing supply disruptions in key global mining regions, and tight domestic availability in India. Imported grades are likely to stay range-bound at elevated levels, while domestic scrap demand may continue to strengthen ahead of festive and production cycles. In Europe, sentiment is expected to remain steady to firm, with limited high-grade supply sustaining mild premiums. Overall, the market outlook points to continued support for prices, though macroeconomic uncertainties in Asia and Europe could temper aggressive upside.