- China reopening boosted brass ingot export demand
- Tight Jamnagar scrap supply keeps prices firm
Domestic brass honey scrap prices increased week-on-week. BigMint assessed brass honey, ex-works Jamnagar, Gujarat, at INR 712,000 per tonne today, marking a rise of INR 29,000/t compared to INR 683,000/t last week.
Market participants noted that prices had already strengthened during the first week of February, when brass honey was assessed in the range of INR 705-715/kg ex Jamnagar. After a brief correction, prices have now rebounded to similar levels. In some cases, deals were even heard at a premium over the prevailing market range, reflecting firm demand and tight availability.
Brass honey scrap remained in strong demand this week amid reported shortages in the domestic market. Demand improved after buyers in China resumed operations following the Lunar New Year holidays, leading to higher brass ingot production. As India exports brass ingots to China and other key markets, improved overseas buying interest directly supported domestic scrap consumption, pushing local prices higher.
In Jamnagar, the key hub for brass manufacturing, sentiment remained distinctly bullish. Market participants reported tighter arrivals of quality honey scrap, while ingot makers were actively covering positions to meet both export and domestic orders. Traders indicated that offers were firm throughout the week, with limited room for negotiation as suppliers held back material expecting further price appreciation.
Converters in Jamnagar are currently operating at healthy capacity levels, supported by steady export inquiries. Many believe that as long as Chinese demand stays stable and scrap inflows remain constrained, brass honey prices may continue to trade on the stronger side. Overall, the tone in the Jamnagar brass market this week was optimistic, with buyers showing urgency and sellers maintaining pricing power due to supply tightness.
Deals
Bangalore-origin brass honey was traded at INR 715/kg, ex-Jamnagar, for 250 tonnes.
Local Bangalore brass honey was heard at INR 705/kg for 120 tonnes.
Local Jamnagar brass honey deals were reported at INR 712/kg for 100 tonnes.
UK brass honey 6-7% at 55% 3 M LME CIF Mundra
Outlook
Outlook remains firm for brass honey scrap in the near term, supported by tight supply and steady export-driven ingot demand. Strong buying interest from Jamnagar-based manufacturers and limited scrap inflows may keep prices elevated. Unless arrivals improve significantly, market sentiment is likely to stay bullish, with potential for further upside if overseas demand continues to strengthen.
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