- LME copper crosses $14,150/t; MCX copper touches INR 1,390/kg today
- Western India cathode premiums increase amid tighter spot availability
Copper cathode prices in western India moved up sharply this week following a strong rally in global copper exchanges and tightening availability across the raw material supply chain.
According to BigMint’s bi-weekly copper cathode assessment for western India, ex-Mumbai prices rose to INR 1,390,000/tonne (t) from INR 1,320,000/t, while ex-Ahmedabad prices moved up to INR 1,393,000/t from INR 1,322,000/t.
LME copper climbed to around $14,150/t today from nearly $13,100/t a week ago, reflecting an increase of around 8% w-o-w. Meanwhile, MCX copper prices rose to INR 1,395/kg from around INR 1,315/kg last week, up by nearly 6% w-o-w.
The sharp rise in exchange prices has been largely driven by worsening global concentrate shortages, historically weak TC/RCs and sulfuric acid supply concerns linked to Middle East disruptions. The ongoing tensions around the Strait of Hormuz have affected sulfur movement globally, tightening sulfuric acid availability, a key input used in copper processing. At the same time, global mine supply growth has remained limited while smelting capacity additions, particularly in Asia, continue to rise.
Market participants stated that concentrate tightness is now directly impacting refined copper and cathode availability in several regions. Several global smelters are operating under pressure due to near-zero or negative spot TC/RCs, resulting in tighter refined copper supply and stronger cathode premiums globally.
In India, copper cathode prices in western markets including Mumbai, Gujarat and nearby industrial regions increased significantly w-o-w. Traders reported that imported cathode offers were revised upward multiple times following the LME rally, while spot material availability remained relatively tight. Some suppliers reportedly slowed spot sales expecting further upside in prices.
However, despite higher prices, physical market activity remained cautious. According to market participants, wire rod manufacturers, conductor makers and brass processors avoided aggressive bulk purchases at current levels due to uncertainty over price sustainability. Most consumers preferred hand-to-mouth buying and booked material only against confirmed downstream orders.
Several traders also highlighted that downstream demand has not increased in proportion to the sharp rise in copper prices. As a result, processors are facing pressure on conversion margins, particularly in spot business where passing higher raw material costs to customers remains difficult. Buyers were seen resisting fresh bookings at elevated premiums despite concerns over tight availability.
The recent announcement by Gravita India Limited regarding a INR 160 crore copper recycling plant in Gujarat also reflects the industry’s growing focus on secondary copper and recycling-led raw material security. Market participants believe such investments could help reduce long-term dependence on imported cathodes and concentrates as global supply volatility continues.
Outlook
Several traders believe cathode prices may remain firm in the near term if concentrate shortages and sulfuric acid disruptions continue globally. However, actual domestic market activity is expected to remain demand-driven rather than speculative, with buyers continuing to stay cautious at elevated price levels.
Leave a Reply