- Millberry scrap demand firm in domestic market
- Imported scrap activity subdued due to holidays
Domestic copper scrap prices in India moved higher w-o-w on 1 January, tracking record-high London Metal Exchange (LME) copper futures, with firm demand seen for Millberry scrap. However, the rally remained largely LME-driven, as physical buying stayed cautious, with most participants restricting purchases to need-based volumes amid elevated price risk.
LME price trend
LME copper prices surged further, with the three-month contract trading around $12,497/t on 1 January, marking a sharp w-o-w increase and extending the recent rally. The move underscores continued bullish momentum in the copper complex, with prices holding well above the $12,000/t-mark due to sustained strength in global sentiment.
Price assessments
According to BigMint’s assessment, Birch/Cliff was assessed at $11,470/tonne (t), up by $210/t w-o-w, while US motors mix stood at $1,290/t, down by $90/t w-o-w (both CFR Mundra).
Market scenario
In the domestic scrap market, demand for copper remained firm during the week, particularly for Millberry scrap, with deals reported around INR 1,145,000-1,150,000/t ex-Delhi. However, the sharp rise in domestic prices was largely driven by LME copper hitting record highs, rather than a proportional improvement in physical buying. As prices adjusted rapidly over a short period, many buyers paused fresh procurement and focused on executing previously committed contracts, citing heightened price risk at current levels.
A trader said, “The rally is LME-led. Physical demand has not picked up at the same pace, and buyers are becoming cautious after the sudden price spike. Most are avoiding fresh exposure until some stability emerges.”
Market participants noted that several wire rod units in north and west India currently have adequate near-term inventory coverage, reducing urgency to buy at elevated levels. In addition, tighter credit terms and cautious cash-flow management have curtailed spot purchases despite firm price signals.
Another source informed BigMint: “Inventory positions are comfortable for now. Buyers are selective, and most spot trades are need-based rather than speculative.”
Import activity remained subdued as western suppliers were largely on holiday. Nonetheless, select high-grade copper scrap cargoes from Africa were heard traded during the week, mainly to buyers seeking prompt material where pricing was relatively workable compared with western-origin offers. Overall, participants reiterated that current price strength remains externally driven and vulnerable to any correction in LME copper, with downstream demand yet to fully absorb the higher benchmarks.
Outlook
The Indian copper scrap market is likely to stay range-bound but volatile in the near term, with prices continuing to mirror LME movements. Buying interest is expected to remain limited at high price levels and due to adequate inventories, with a clearer demand picture emerging only after the holiday period.
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