Indian copper scrap prices remained rangebound this week, following trends prevailing on the London Metal Exchange (LME) platform. Copper armature scrap was assessed at INR 788,000/tonne (t) ex-Delhi, while motors mix decreased by $20/t w-o-w to $1,150/t.
LME futures were rangebound at $9,608/t compared with last week’s $9,610/t. Meanwhile, copper stocks at LME-registered warehouses stood at 154,300 t, down by 6% compared to 164,800 t the previous week.
Secondary continuously cast rods (CCRs) (99.90%) were assessed at INR 845,000/t ex-Delhi, rangebound w-o-w. Meanwhile, primary CCR prices stood at INR 878,000/t, steady w-o-w.
Domestic market
Copper scrap demand remains strong, with buyers actively purchasing in expectation of further price increases.
As per a market participant, “Raw material availability is tight due to a global shortage, while persistent labour constraints continue to limit supply. This combination is keeping competition high and supporting firm copper scrap prices in the current market environment.”
A trader source stated, “Domestic copper scrap availability has been good of late. But with several countries implementing measures to restrict scrap exports, the supply outlook for Indian buyers could tighten, potentially leading to increased competition and upward pressure on domestic copper scrap prices going forward”.
Global update
A source said, “Copper supply outside of exchange-registered inventories (EQ) remains tight, primarily due to unreliable power supply in the Democratic Republic of Congo (DRC), a key production hub. Some producers in the DRC are currently only able to fulfill the lower end of their contracted delivery volumes”.
China market
As per reports, China experienced a tightening in copper scrap supply during March and April, largely due to its retaliatory tariffs on US copper scrap imports. While overall Chinese copper scrap imports rose by 2.7% y-o-y to 572,234 t in January-March, imports from the US dropped by 16% over the same period as a result of the tariffs.
Domestic supply also contracted in April, as sellers hesitated to offload material following a steep drop in copper prices. In April, domestic copper scrap traded at less than RMB 1,000/t ($138/t) below refined copper, significantly narrower than the typical RMB 1,500/t ($207/t) discount considered reasonable by market participants.
As a result, scrap became less appealing to copper fabricators, many of whom shifted to using refined copper instead. This switch has driven up demand and domestic premiums for refined copper.
Recent deals
Australian-origin copper clove was heard traded at 99% of 3M LME
UAE Birch Cliff was traded at 92.5% LME CFR Chennai
Outlook:
The Indian copper scrap market is expected to remain firm in the near term, supported by strong domestic demand and tightening global supply. Market participants anticipate continued competition for available scrap, potentially leading to further price increases.
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