- Domestic copper scrap prices inch up slightly
- Far East premiums divert cargoes from India
Copper scrap prices in India inched up slightly w-o-w on 6 May, even as London Metal Exchange (LME) copper prices declined to around $12,970/t, down by $230/t from last week’s $13,200/t. Despite softer global prices, the Indian scrap market remained supported by better realisations in Far East destinations, tight availability of quality material, and steady buying interest from secondary manufacturers.
The weaker global copper trend had limited impact on domestic scrap prices, as constrained inflows and continued diversion of premium-grade cargoes to overseas markets kept local supply conditions tight. According to BigMint’s assessment, copper armature scrap, ex-Delhi, was at INR 1,146,000/t, up by INR 8,000/t from INR 1,138,000/t in the previous week.
Additionally, BigMint has recently launched bi-weekly price assessments for copper cathodes on an ex-Mumbai and ex-Ahmedabad basis, with current prices standing at INR 1,286 per kg ex Mumbai and 1,288 per kg Ex Ahmedabad yesterday.
Market scenario
The Indian copper scrap market remained firm during the week, supported by stable demand from recyclers, cable manufacturers, wire rod producers, and secondary processors, who continued to procure material to maintain regular production activity. Buying interest remained consistent across key consuming sectors, particularly for high-grade copper scrap, even as availability of quality material stayed limited.
Tight inflows of premium-grade scrap and elevated imported offers kept procurement activity competitive during the week. Better realizations in Far East countries and Pakistan diverted high-grade scrap cargoes away from India, tightening domestic availability and supporting local prices despite weaker LME trends.
Birch/cliff scrap was quoted by Far East buyers at above 93% of LME, compared with Indian bids of around 90-90.5% of LME. Similarly, candy/berry scrap was offered at above 97% of LME in Far East markets against around 95% in India.
Meanwhile, global copper supply developments remained in focus, with Jubilee Metals reporting higher copper production from its Zambia operations as ramp-up activities continued. However, the gradual pace of supply expansion reinforced expectations that near-term tightness in copper raw materials and scrap availability may continue to support scrap premiums and domestic prices.
Outlook
BigMint expects the copper scrap market to remain firm in the near term, supported by steady domestic demand, tight material availability, and stronger overseas premiums. However, softer LME movements may continue to cap sharper upside in domestic prices.
In the imported segment, firm overseas premiums and tight concentrate supply are expected to keep the domestic copper scrap market mildly firm in the near term.
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