Indian copper prices showed a declining trend in the past week (25-29 March). SteelMint’s assessment for copper armature scrap prices stood at INR 728,000/t ($9,516/t) today, falling by INR 25,000/t ($327/t) w-o-w. This was reflected in primary copper wire rod prices which were at INR 805,000/t ($10,522/t), down INR 62,000/t ($810/t) w-o-w.
Secondary copper wire rod prices were also down by INR 31,000/t ($405/t) on a w-o-w basis to INR 777,000/t ($10,156/t). LME three-month copper prices fluctuated during the week and touched the same level of $9,769/t on Friday against 25 April. This was followed by fluctuating stock levels last week. LME-registered warehouses recorded stocks of 93,975 t in the beginning of April.
However, stocks increased significantly by around 14% to 156,050 t on 29 April w-o-w, SteelMint learnt. The reason behind falling copper prices is the uncertainty in the market and low demand, as buyers have stopped booking material and are waiting for further price correction.
The COVID-19 outbreak in China, which is the biggest copper market in the world, also dampened demand, sources informed SteelMint.
Moreover, the impact of negative MCX prices was reflected in domestic market prices. One-month future contract prices of copper cathodes fell by 2.3% to INR 765,000/t. The stocks on MCX were recorded at 1.58 mnt on 30 April, up 4% w-o-w.
Some market sources believe that the Ukraine-Russia war might come to an end due to which markets can fall further as supply may resume from the European countries.
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