- Imports from UAE remain disrupted; US, European offers rise
- Tight liquidity, LME volatility keep buyers cautious
Domestic brass honey scrap prices in India increased marginally w-o-w, reflecting a balance between tight supply conditions and cautious buying sentiment. BigMint assessed brass honey scrap, ex-works Jamnagar, Gujarat, at INR 705,000/t on 13 March, up by 0.7% from INR 700,000/t last week. Prices showed moderate fluctuations during the week. Market participants attributed the limited price movement to tight material availability offset by cautious buying amid volatile global copper prices.
Supply constraints continued to be a key factor in Jamnagar — India’s largest brass manufacturing hub. Market participants reported that inventories among several small and mid-sized processors remained thin, forcing some buyers to secure scrap at marginal premiums to maintain regular production schedules.
One of the primary reasons behind the tight supply is the continued disruption in brass scrap imports from the United Arab Emirates, historically one of India’s key suppliers of mixed brass scrap. Traders indicated that shipments from UAE-origin suppliers have slowed due to logistical uncertainties linked to geopolitical tensions in the Middle East, which have impacted shipping routes and cargo movement.
In addition to lower inflows from the Middle East, suppliers from Europe and the United States were heard raising their offers by around 2-3%, taking advantage of reduced regional availability. Higher freights and insurance costs also pushed up landed scrap prices for Indian importers.
Meanwhile, global copper prices remained relatively firm during the week, adding to cautious market sentiment. On the London Metal Exchange (LME), copper cash settlement prices moved from $12,750/t on 9 March to $12,895/t on 12 March, while LME inventories rose from 294,250 t to 312,350 t during the same period. Market participants said the volatility in copper benchmarks prompted some buyers to delay bulk purchases and operate with limited inventory.
Demand conditions in the domestic market remained steady but not aggressive. Manufacturers continued to procure material on a need-based basis, while traders reported that deal sizes remained relatively small amid tight liquidity across the recycling sector.
Outlook
The near-term outlook for brass honey scrap prices remains stable with a firm undertone, supported by tight raw material availability and higher import costs. However, continued volatility in global copper prices and uncertainties in scrap import flows may keep trading activity cautious in the coming weeks.
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