- Summer labour shortages slow down scrap processing
- Trump’s tariff reduction signals boost market sentiment
India’s copper scrap prices continued to rise this week, driven by persisting global supply shortages in both raw material and semi-finished segments and an increase in London Metal Exchange (LME) futures. Prices rose last week too.
Copper armature scrap was assessed at INR 790,000/tonne (t) ex-Delhi, up by INR 5,000/t w-o-w, while motors mix tags moved up by $70/t w-o-w to $1,220/t. This followed a rise of $250-260/t w-o-w in LME futures to $9,434/t from last week’s $9,174/t. Meanwhile, copper stocks at LME-registered warehouses stood at 205,250 t, down by 3% compared to 2119,25 t in the previous week.
Secondary continuously cast rods (CCRs) (99.90%) were assessed at INR 860,000/t ex-Delhi, reflecting a rise of INR 10,000/t w-o-w. Meanwhile, primary CCR prices stood at INR 842,000/t, up by INR 5,000/t w-o-w.
LME copper hits 3-week high on trade optimism
LME copper prices climbed up to a three-week high as easing US-China trade tensions boosted market sentiment. Signals from President Trump about potential tariff cuts on Chinese imports supported the rally. The market responded strongly to hopes of de-escalation in trade policy, fuelling renewed investor confidence in industrial metals.
Domestic market insights
A source highlighted, “Copper scrapyard owners are holding on to material, expecting further price gains due to global shortages. High-grade scrap is in demand, with buyers ready to pay premiums.”
Buyers requiring material on an immediate basis secured copper scrap at premium prices from Australia, driven by tight supply and strong demand. This highlights the growing pressure on copper availability too.
Adding to this, in the domestic market, there persists labour shortages, especially with half-day working schedules due to summer. These have slowed down production and affected the processing of new scrap, further tightening supply and increasing pressure on copper availability.
Another source stated, “Exports of burnt copper scrap from India could commence by mid-2025.”
Recent deals
Recently, deals were heard for Australian-origin Meatballs (19%) in the range of $1,680-1690/t and Meatballs (20%) at $1,740-1,750/t CFR Chennai, and some grades such as Candy Berry were heard traded at 97.75% of LME prices. Additionally, US copper motors mix was traded at $1,220-1230/t recently.
UAE Birch Cliff was heard traded at 92% 3M LME and UK Brass Honey 5-6% booked at 62% 3M LME.
Additionally, deals were reported for copper Druid scrap from Australia to CFR Chennai: high-grade at 94.5% of LME, mid-grade at 92.5% of LME, and low-grade at 90% of LME.
Outlook
Copper prices are expected to remain elevated amid persistent material shortages and rising LME trends. Firm demand and limited availability continue to drive bullish momentum in both domestic and international markets, keeping sentiment positive for the near term.
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