- Indian cathode buyers prefer short-cycle bookings amid price volatility
- Pondy Oxides project may support future domestic cathode availability
Copper cathode prices in western India softened w-o-w on 28 May 2026 following range-bound movements in global copper prices, leading to lower domestic offers.
As per BigMint’s assessment, ex-Mumbai copper cathode prices fell to around INR 1,325,000/t today from nearly INR 1,345,000/t last week. Similarly, Ahmedabad prices declined from around INR 1,393,000/t to INR 1,327,000/t.
The decline followed weakness in both the London Metal Exchange (LME) and Multi Commodity Exchange (MCX) copper prices. LME copper corrected from around $14,000/t last week to nearly $13,530/t today, while MCX copper prices dropped from around INR 1,342/kg to nearly INR 1,319/kg. Domestic cathode prices moved lower in line with these benchmark corrections.
Market scenario
The decline in domestic cathode prices largely followed softer exchange trends after LME copper corrected from recent highs, while MCX copper also weakened during the week. Traders indicated that uncertainty surrounding the proposed US Section 232 investigation into refined copper imports continued to influence global copper trade flows and exchange sentiment.
Earlier, widening arbitrage between the Chicago Mercantile Exchange CME and LME had attracted significant copper inventories into the US market, supporting copper prices globally. However, growing concerns over weak Chinese demand, rising global exchange inventories, and surplus refined copper availability recently triggered profit booking in LME copper, pressuring domestic cathode prices in India.
In the physical market, buying activity from wire rod manufacturers, conductor makers, and alloy producers remained relatively stable but highly cautious. Most consumers reportedly continued booking material only against confirmed downstream orders, particularly in western India, where several cable and winding wire manufacturers preferred short-cycle procurement strategies instead of bulk stocking. Market participants also highlighted that improved domestic cathode availability eased immediate spot tightness across some trading hubs.
In north India, cathode demand from secondary rod manufacturers remained comparatively stable due to continued consumption from power cable and infrastructure-linked sectors. However, rapid fluctuations in MCX copper prices impacted conversion margins for several smaller downstream processors, limiting aggressive spot buying activity during the week.
Pondy Oxides project may support domestic cathode availability
Meanwhile, market participants viewed Pondy Oxides and Chemicals’ recently approved copper recycling project as a positive long-term development for India’s domestic cathode market. The company approved a nearly INR 200 crore copper recycling plant at Thervoykandigai, Tamil Nadu, with an annual production capacity of around 36,000 t of LME Grade-A copper cathodes.
The project, expected to be commissioned by December 2026 in two phases, is likely to strengthen domestic secondary copper processing capacity and improve the availability of locally refined cathodes. Traders noted that increasing recycling-based cathode production may gradually reduce dependence on imported refined copper and support India’s broader copper self-sufficiency goals over the medium term.
Outlook
Indian copper cathode demand is expected to remain firm, supported by power infrastructure, renewable energy, cable and transmission sectors. However, procurement activity is likely to remain cautious in the near term amid continued volatility in global copper prices and evolving international trade developments.
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