- Upcoming copper capacities keep scrap sentiment supported despite weaker prices
- Tight global scrap flows keep Indian buyers chasing limited cargoes
Copper scrap prices in India declined marginally w-o-w on 20 May’26, tracking the correction in London Metal Exchange (LME) copper prices, which fell by $610/t to around $13,411/t from $14,021/t on 13 May. The softer global copper trend weighed on imported and domestic scrap offers across Indian markets, while market activity remained largely requirement-driven amid cautious buying sentiment.
At the domestic level, buying activity remained largely requirement-driven across key trading hubs. According to BigMint’s assessment, Copper Armature scrap, ex-Delhi, declined by around 0.75% w-o-w to INR 1,206,000/t from INR 1,215,000/t last week.
In the imported scrap segment, EU-origin Brass Honey declined to 58% of 3M LME CFR Nhava Sheva from 59.5% last week. Meanwhile, US-origin Copper Motor scrap, CFR Mundra, declined by $50/t w-o-w to around $1,650/t from $1,700/t last week, with buying activity in India remaining largely need-based at prevailing price levels.
Market scenario
Market sentiment in the Indian copper scrap sector remained balanced during the week, with marginal corrections in copper prices offset by tight scrap availability and expectations of stronger demand from upcoming processing capacities. Trade participants indicated that multiple new plants are expected to commence operations in the next quarter, potentially generating additional scrap demand of nearly 20,000-22,000 tonnes for a Delhi based region, supporting buying interest for high-grade copper scrap grades in the near term.
Supply conditions remained constrained across key sourcing regions. Traders reported limited availability of Middle East-origin material, restricting spot cargo inflows into India and prompting buyers to offer premiums for cleaner and higher recovery-grade scrap amid rising competition for available volumes.
In the overseas market, offer percentages for select brass and copper scrap grades in the US were revised downward, with Brass Honey heard around 61.5% of 3M LME and Birch/Cliff near 91.75% of 3M LME, reflecting shifting global scrap flows. However, Overseas copper scrap offers remained elevated, making procurement increasingly challenging for import-dependent Indian buyers.
At the same time, stronger bids from Far East buyers continued to divert copper scrap cargoes away from India. Market participants stated that improved realizations in Asian destinations intensified competition for available material in the international market.
Despite rangebound copper prices, the Indian copper scrap market remained supported by tight supply conditions and anticipated demand growth, while volatility in premiums is expected to persist in the near term as buyers position themselves ahead of upcoming capacity additions.
Outlook
The copper scrap market is expected to remain balanced in the near term, with softer LME copper prices likely to weigh on spot offers, while tight scrap availability and anticipated demand growth from upcoming processing capacities may continue to support market fundamentals. Limited availability of Middle East-origin material and firm premiums for high-grade scrap are expected to keep supply conditions constrained across Indian markets.
However, cautious buying sentiment and requirement-driven procurement activity may limit aggressive spot bookings in the domestic market. In the imported segment, elevated overseas offers and stronger competition from Far East buyers are expected to keep the domestic copper scrap market volatile in the near term, with premiums likely to remain firm amid restricted scrap availability.
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