- Global supply tightness underpins copper rally
- Clean copper grades command strong premiums
Domestic copper scrap prices in India moved higher w-o-w on 7 January, tracking a fresh record rally in London Metal Exchange (LME) copper futures. Prices strengthened across both imported and domestic grades, supported by tight global supply conditions and firm downstream demand. However, despite the strong price momentum, buying activity remained largely need-based, as participants exercised caution amid elevated price risk.
LME price trend
LME copper prices surged to a new all-time high, with the three-month contract trading around $13,238/t on 7 January, extending the strong rally seen since late December. The sharp rise has been driven by tightening global supply conditions, disruptions at key mining operations, constrained output growth, and shifting global trade flows that have tightened physical availability. Strong speculative interest further amplified the move, reinforcing bullish sentiment across the copper complex and pushing prices well above previous highs.
Price assessments
According to BigMint’s assessment, Birch/Cliff was assessed at $12,300/tonne (t), up by $830/t w-o-w, while US motors mix stood at $1,400/t, UP by $110/t w-o-w (both CFR Mundra).
Market scenario
A trader stated Global copper scrap prices remain high due to record high LME , limited availability of clean grades and steady export movement. Exporters are holding offers at higher levels as material continues to move without resistance. There is reasonable supply in some regions specially in USA due to expectations of increase in tariff, sellers see little pressure to reduce prices, especially for clean copper scrap.
Another market player stated “Following the holiday period, Western exporters have returned to the market, and trading activity has picked up steadily. Export enquiries have increased, and deal discussions are translating into confirmed shipments. With logistics normalising, exporters report smoother flows and better market participation compared to the previous holiday-impacted weeks.
In India, copper rod (CCR) plants are operating at near-full capacity, supporting consistent demand for copper scrap. This has kept buying interest steady for prompt cargoes, particularly for clean and low-impurity grades. Strong operating rates at rod plants continue to provide firm support to copper scrap prices.
Outlook
The Indian copper scrap market is expected to remain firm but volatile in the near term, with prices continuing to closely mirror LME movements. While underlying demand remains healthy, buying is likely to stay selective at current elevated levels, with participants closely monitoring LME direction and global supply developments. Any sharp correction in futures could temper spot activity, though tight availability of key grades may continue to lend downside support.
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