• Renewed buying supports Jamnagar market
• Tight availability keeps seller offers firm
India’s brass honey scrap prices remained stable w-o-w at INR 930,000/t exw-Jamnagar in the week ended 18 September. Renewed procurement after the Janmashtami shutdown and tight availability of quality scrap supported prices, while cautious buying limited further gains.
LME prices were at $14490/t as against $14200/t a week back.
Buying resumes after Jamnagar reopening
Recyclers, ingot makers and component manufacturers returned to the market after operations resumed in Jamnagar, improving spot buying activity. Several transactions were heard at around INR 940/kg shortly after reopening, reflecting firm seller sentiment and limited availability.
However, activity subsequently moderated, with deals largely concluded at INR 925-930/kg in Jamnagar and around INR 920/kg in Delhi. Buyers remained reluctant to build inventories at elevated prices and largely purchased material against immediate production requirements.
Copper rally supports scrap prices
Firm LME copper prices provided additional support to brass honey scrap values. Copper futures reached record-high levels during the assessment period, strengthening replacement-cost expectations and encouraging sellers to maintain higher offers.
Despite the positive price trend, buyers remained cautious as some market participants considered current price levels difficult to sustain. This kept spot activity moderate despite improved participation following the holiday-related shutdown.
Import offers remain firm
Overseas brass honey scrap offers remained elevated, supported by higher copper prices and limited availability from some origins. European and UK-origin material was heard at around 62% of LME, while Australian-origin scrap was offered at 61-62% of LME.
US-origin supply remained constrained as strong domestic demand absorbed a larger share of locally generated scrap. Traders indicated that reduced export availability from the US was limiting volumes available to markets such as India, providing additional support to international offers.
Outlook
Trading activity in Jamnagar may slow through the remainder of September if elevated copper and scrap prices persist. Buyers are likely to continue limiting procurement to production requirements while waiting for greater clarity on copper price direction.
Market activity is therefore expected to remain closely linked to LME copper movements and overseas scrap availability. A correction in copper prices could reduce replacement-cost pressure and encourage buyers to defer purchases further, while continued supply tightness could keep seller offers supported.
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