- Record prices keep Indian buyers cautious
- Imported scrap availability tight amid diversion
India’s copper scrap prices rose w-o-w on 10 September 2026, driven by record high prices on the London Metal Exchange (LME) at around $14,700/t, According to industry insiders, the surge is less about expectations of stronger global economic growth and more about concerns over potential tariffs by the United States, which could come into effect from January 2027 and are already influencing copper trade flows and inventories.
Additionally, Tight domestic supply, elevated import costs, and stronger global copper prices continued to support market sentiment despite some improvement in scrap yard inventories According to BigMint’s assessment, copper armature scrap, ex-Delhi, was assessed at INR 1,340,000/t, up from INR 1,300,000/t a week earlier.
Market participants reported multiple transactions during the assessment week, reflecting stronger buying interest despite constrained spot availability.
India’s copper scrap market turned increasingly cautious after LME copper touched a record high on 9 September, with many market participants stepping back from fresh bookings despite the availability of material. Traders reported that the sharp rise in global prices and continued volatility have increased the risk of inventory losses, prompting buyers to postpone procurement decisions. As a result, several consumers preferred to monitor price movements rather than commit to large-volume purchases at current levels.
According to market participants, copper scrap material remains available from multiple origins, and a few transactions were heard during the week. Deals were reported from Australia to Chennai and Gujarat and the US to Gujarat, indicating that supply channels into India remain active. However, trading activity was largely limited to immediate requirements, with buyers showing little appetite for stock-building amid uncertainty over near-term price direction.
Market participants noted that the current rally has created a disconnect between seller expectations and buyer confidence. While suppliers continue to offer material at elevated levels, many consumers believe prices could correct later this month if speculative activity eases or global markets stabilize. This has resulted in slower negotiations and longer decision-making cycles across the market.
Several traders also highlighted a shift in international scrap flows. Material from the UAE and other Asian origins is increasingly being diverted to Europe and select Asian destinations, where stronger netbacks are currently available. At prevailing international price levels, India has become a less attractive destination for some exporters, reducing the competitiveness of Indian importers in securing spot cargoes.
Despite the cautious sentiment, underlying consumption remains stable. However, buyers are currently prioritizing price visibility over volume commitments. Market participants expect trading activity to recover once copper prices stabilize and confidence returns to the physical market. Until then, procurement is likely to remain selective, with most consumers purchasing only against short-term requirements rather than building inventories.
Outlook
India’s copper scrap market is expected to remain cautious in the near term as elevated LME copper prices and persistent volatility keep buyers focused on immediate requirements. However, underlying demand from the wire, cable and electrical sectors remains healthy. If global copper prices stabilize and import parity improves, procurement activity could pick up in the coming weeks. At the same time, tighter global scrap availability and the diversion of material to higher-paying destinations may continue to limit spot supply and support prices.
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