- Buying interest healthy but conversion into deals remains slow
- Need-based purchases continue due to monsoon lull, higher prices
Copper cathode prices in western India increased w-o-w on 23 July 2026, supported by a sharp recovery in LME copper prices and firmer import premiums. Buying activity, however, remained largely requirement-based as downstream consumers continued to exercise caution amid elevated prices and uncertainty surrounding the proposed US copper import tariffs.
As per BigMint’s assessment, ex-Mumbai copper cathode prices rose to around INR 1,348,000/t on 23 July from nearly INR 1,320,000/t last week. Similarly, Ahmedabad prices increased to around INR 1,350,000/t from approximately INR 1,322,000/t over the same period.
The increase in domestic prices was primarily driven by stronger global benchmarks. LME copper prices climbed to around $13,750/t from nearly $13,600/t last week, supported by a continued drawdown in exchange inventories.
Market insight
On the demand side, buying interest remained healthy, but actual conversions into deals were limited. Wire rod manufacturers, cable producers, and brass fabricators continued to purchase only against confirmed orders, avoiding large-volume bookings due to the recent price surge. Many buyers preferred to wait for prices to stabilise before rebuilding inventories, while others continued with hand-to-mouth procurement to minimise price risk. Consequently, negotiations remained prolonged, with buyers seeking discounts and sellers reluctant to lower their offers.
The monsoon continued to influence domestic trading activity, particularly in northern and western India, where slower construction and infrastructure activity kept downstream consumption subdued. However, demand from the electrical, power transmission, and renewable energy sectors remained relatively stable, preventing a sharp decline in overall offtake.
High-grade copper cathodes witnessed relatively stronger demand than standard grades, as quality-conscious consumers preferred assured material despite higher prices. Market participants also reported continued interest in imported cathodes, although elevated international prices narrowed buyers’ appetite for fresh bookings.
On the supply side, material availability remained comfortable as higher domestic production continued to offset import dependence. No major supply disruptions were reported, and deliveries across key consuming regions remained smooth.
Overall, market sentiment remained positive on the seller’s side, supported by higher LME prices and firm global fundamentals. However, domestic buying stayed cautious due to elevated prices and seasonal demand weakness, keeping spot trading moderate. Market participants expect trading activity to improve after the monsoon, provided international prices stabilise.
Outlook
Domestic copper cathode prices are expected to remain firm in the coming weeks, supported by elevated LME prices, tight global copper concentrate availability, and higher import costs. However, buying activity is likely to stay limited to immediate requirements as consumers remain cautious amid elevated prices and ongoing uncertainty over the proposed US copper import tariffs. While global supply fundamentals continue to support prices, the pace of domestic trading is expected to improve only after the monsoon season, when downstream demand from the construction, electrical, and infrastructure sectors begins to recover.
Leave a Reply