- Caution emerges amid global price volatility
- High-grade scrap remains in short supply
India’s copper scrap prices dropped this week, following a 3% w-o-w decline in London Metal Exchange (LME) futures.
Copper armature scrap was assessed at INR 780,000/tonne (t) ex-Delhi, down by INR 10,000/t w-o-w, while motors mix tags decreased by $75/t w-o-w to $1,145/t. Additionally, a drop of $245/t w-o-w in LME futures to $9,189/t from last week’s $9,434/t. Meanwhile, copper stocks at LME-registered warehouses stood at 200,150 t, down by 2.5% compared to 205,250 t in the previous week.
Secondary continuously cast rods (CCRs) (99.90%) were assessed at INR 830,000/t ex-Delhi, reflecting a drop of INR 30,000/t w-o-w. Meanwhile, primary CCR prices stood at INR 865,000/t, rising by INR 23,000/t w-o-w.
Market insights
Domestic copper market sentiment was cautious, with volatility in global pricing continuing to disrupt normal trade flows. A major player reportedly scaled back its purchases due to erratic price movements, with no trades seen to have taken place at a premium.
Bids for Millberry stood at INR 895,000/t last week, but most buyers were in a wait-and-watch mode, reacting to the unstable LME trends. This resulted in limited spot activity, especially for key grades such as UAE Birch (traded at 91-91.5% of LME) and US-origin Motors (quoted at $1,150/t), indicating a lack of aggressive buying interest.
The domestic market also continued to witness a shortage of high-grade copper scrap, prompting a shift in sentiment. While armature was traded in the INR 775,000-780,000/t range in Delhi and western India, premium-quality scrap was increasingly being sourced from Australia at prices above LME, highlighting tight supply. Despite the price fluctuation, demand was steady for select segments as buyers prioritised securing quality material even at higher costs.
Additionally, Busan reportedly quoted significantly higher bids at around $1,850/t for Meatballs, compared to Indian buyers bidding $1,700-1,750. This price gap led to material being diverted to Busan, limiting availability in the local market.
Overall, market mood was subdued but watchful, with selective bullishness in high-grade and speciality scrap, driven by constrained supply and active premium bidding from strategic buyers.
Recent deals
Australian-origin Brass Honey 2% was heard traded at 65.5% of LME.
Outlook
Copper prices are expected to remain range-bound in the near term. Suppliers hope for a potential upward movement in prices, as they look to liquidate previously stocked material, which was purchased at higher rates. This strategy would help them protect profit margins amid current market volatility. However, buyer sentiment remains cautious, and premium bids have largely disappeared, reflecting a wait-and-watch approach.
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