- Pollution control measures impact scrap processing activity
- Exporters keep offers high, tracking recent LME gains
Imported copper scrap prices in India moved higher w-o-w on 19 December, supported by positive momentum in London Metal Exchange (LME) futures. Domestic scrap prices also firmed up as market sentiment stabilised. Buying remained cautious, however, with LME’s brief move towards the $11,800/t mark on 12 December again tempering aggressive restocking.
Price assessments
According to BigMint’s assessment, Birch/Cliff was assessed at $10,790/tonne (t), up by $90/t w-o-w, while US motors mix stood at $1,340/t, up by a minor $10/t w-o-w (both CFR Mundra).
Market scenario
In the domestic scrap market, trading activity remained limited to immediate needs. A trader stated, “Domestic copper market sentiment in north India remains weak, with trading and processing activity in Delhi significantly impacted by ongoing environmental restrictions. Permissions for new copper plants in Delhi continue to face hurdles due to pollution concerns, while around four new copper CCR units are reportedly being developed in Rajasthan, reflecting a gradual shift of capacity away from the National Capital Region. Several aluminium and copper plants are operating at low utilisation levels, and some units have been temporarily shut as regulatory checks intensify.”
Another seller source “Across the broader north Indian market, demand remains cautious, with wire rod and scrap buyers limiting procurement to immediate requirements. Smaller processing units are reportedly operating during night hours to meet need-based orders while avoiding regulatory scrutiny. Market participants note that inventory levels remain tight, spot buying dominates, and any recovery in activity is likely to remain gradual until pollution-related restrictions ease and demand improves following the year-end.”
In the domestic market, payment delays of up to 15 days made sellers cautious, further limiting trade activity.
Imported copper scrap prices remained firm this week, with overseas suppliers maintaining higher offers in line with LME copper staying above $11,500/t since 5 December. However, these levels were unworkable for Indian buyers owing to bid offer discrepancies. While tight mine supply expectations and Chinese restocking continued to drive the LME rally, weak physical demand in India restricted pass-through to scrap prices.
Additional updates
Chilean major Codelco announced a sharp near 40% increase in European premiums for 2026 deliveries, raising levels to the mid-$300s/t over LME, with Aurubis reportedly offering similarly elevated premiums, reflecting tighter refined copper availability in Europe.
Meanwhile, China imported 365,002 t of copper scrap from EU-27 countries during January-October, up 4.5% y-o-y, accounting for around 19% of its total scrap imports.
Market participants also expect potential future restrictions on copper scrap exports from Europe and the US, as scrap increasingly becomes a critical feedstock for smelters amid weak concentrate availability.
Outlook
India’s copper scrap market is likely to remain subdued during the rest of the month, as year-end plant closures weigh on demand. Limited offtake and cautious buying are expected to keep trade volumes low. Looking ahead, activity is expected to pick up after the New Year as plants resume operations, potentially supporting a rebound in prices and market sentiment.
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