- China buying slowers; bid-offer gap limits deal closures
- Lower LME copper adds to cautious market sentiment
Domestic brass honey scrap prices declined w-o-w in India, reflecting weaker buying sentiment and slower trading activity. BigMint assessed brass honey scrap, ex-works Jamnagar, Gujarat, at INR 700,000/t today, down by INR 12,000/t from INR 712,000/t last week.
Prices gradually softened through the week, with brass honey assessed at INR 705,000/t during early-week trades before slipping further to INR 700,000/t by the end of the week. Market participants reported that trading activity remained thin, with buyers adopting a cautious stance amid volatile global copper prices.
Demand for brass scrap has slowed down despite the return of Chinese buyers after the Lunar New Year holidays. While some buying interest has resumed, market participants noted that Chinese demand for brass ingots remains weaker compared with earlier levels, limiting fresh procurement of scrap.
Traders indicated that Chinese buyers were bidding close to 60% of copper value for brass scrap, while suppliers were holding offers around 63%, creating a notable bid-offer gap that has restricted deal closures in the market.
In Jamnagar – India’s key brass manufacturing hub – some sellers were reportedly offering brass honey scrap at INR 685,000-690,000/t in an attempt to liquidate inventories. The recent retreat in copper prices on the London Metal Exchange (LME) from levels near $13,000/t has added to market uncertainty, prompting many buyers to remain on the sidelines.
Supply-side dynamics have also been influenced by disruptions in import flows. Market participants reported that imports of brass scrap from the United Arab Emirates have largely halted, citing ongoing geopolitical tensions and shipping disruptions. However, despite reduced import availability, overall demand remained subdued.
Demand from other domestic consumption centres such as Delhi has also remained weak, further weighing on overall market activity.
Market participants noted that trade volumes have declined, with smaller deal sizes and slower payment cycles becoming more common. Tight liquidity and cautious sentiment across the brass recycling sector have continued to limit aggressive buying.
Outlook
The near-term outlook for brass honey scrap remains cautious to weak, as buyers continue to monitor global copper price movements and downstream demand conditions. Unless export orders for brass ingots improve or copper prices stabilise, market participants expect prices to remain under pressure in the short term, with trading activity likely to stay subdued.
Leave a Reply