- Jamnagar brass market resumes after festival closure
- Tight scrap availability supports market sentiment
India’s brass honey scrap prices increased by 2.2% w-o-w in the week ended 11 September. Renewed procurement and tight quality scrap availability supported the rise after Jamnagar’s brass market reopened following the Janmashtami shutdown.
BigMint assessed brass honey scrap prices at INR 940,000/t exw-Jamnagar, up from INR 930,000/t a week earlier. Recyclers, ingot makers and component manufacturers returned to the market after operations resumed. This improved spot buying activity.
Festival shutdown temporarily restricts market activity
Jamnagar’s brass recycling and manufacturing cluster remained closed for around 10 days during the Janmashtami festival. Market participants said the shutdown follows a long-standing regional practice.
Recycling yards, processing units, trading houses and manufacturing facilities across the cluster suspend operations during the festival.
Businesses have now resumed operations. Buyers returned to replenish inventories, while traders and manufacturers restarted spot transactions. Higher procurement activity and limited quality scrap availability pushed prices higher during the week.
Import market softens
Market participants reported lower offers for European-origin brass honey scrap against LME copper prices. Import indications fell to around 61.25% of LME copper prices from nearly 63% earlier. Softer overseas pricing and changing trade conditions drove the decline.
Lower import offers could improve buying opportunities for Indian consumers. However, limited availability continues to restrict the impact on domestic prices.
Brass ingot exports to China improve
India’s brass ingot export market also strengthened during the week. Market participants reported export transactions to China at around 64% of the prevailing LME copper price. A week earlier, deals stood at around 61-62%.
The increase points to stronger buying interest from Chinese consumers. It also supported sentiment across the brass value chain.
Domestic spot deals move higher
In Jamnagar, most spot transactions concluded at around INR 938,000-940,000/t during the assessment week. In the previous week, deals stood at around INR 925,000-930,000/t.
The increase reflects stronger procurement after the market reopened. Competition for limited volumes of quality scrap also supported spot prices.
Outlook
Brass honey scrap prices may remain firm through the rest of September. Tight material availability and replenishment buying should support the market after the festival shutdown.
However, trading activity has now largely returned to normal. Prices have also moved higher over the past week. Further gains may therefore depend on stronger downstream demand or increased buying from export markets.
Leave a Reply