- Chinese post-holiday demand revives global momentum
- Active short covering, tighter availability support domestic market
Imported copper scrap prices in India moved sharply higher w-o-w, as assessed on 25 February, tracking a strong rebound on the London Metal Exchange (LME). Firm global cues, renewed Chinese buying after the holiday break and active short covering lifted both import offers and domestic scrap prices.
According to BigMint’s assessment, Middle East-origin Birch Cliff scrap was assessed at $12,355/t CFR Mundra, up by 4.4% w-o-w, while armature scrap prices were up by 2% w-o-w to INR 1,132,000/t ex-Delhi. US motors mix prices also rose by 7% w-o-w to around $1,550/t CFR Mundra.
LME trend
LME copper prices rebounded sharply during the week, crossing the $13,000/t mark. The rally followed stronger-than-expected demand recovery from China after the holiday break, with several downstream plants reportedly operating at full capacity. Earlier expectations of a price correction had prompted sellers to withhold material; however, the unexpected rebound reversed sentiment and supported higher global price levels.
The sharp upswing in futures triggered upward revisions in import offers, as overseas suppliers adjusted quotes in line with the stronger exchange trend.
Market insights
In India, the copper scrap market tracked the firm LME movement. Import offers increased as overseas suppliers raised their quotes, while domestic traders revised prices to reflect the higher cost of replenishment. Buyers who had delayed purchases amid expectations of a correction returned to the market to secure material, leading to active short covering, particularly among secondary processors and wire rod manufacturers.
Africa-origin copper armature (mix) was reported traded at LME minus 7% on a CIF Mundra basis. Meanwhile, Poland-origin brass scrap with 6-7% attachment was reported traded at 54% of the 3-month LME price on a CIF Mundra basis.
Additionally, UAE-origin Birch scrap was heard traded 93% of the 3-month LME price on a CIF Mundra basis, while UAE-origin brass scrap was also reported concluded 58.5% of the 3-month LME price on a CIF Mundra basis.
Supply constraints remain a key concern, especially for clean and high-purity scrap grades. Premium materials continued to trade at elevated premiums in local markets due to limited availability. Market participants report a shortage of quality scrap, which is supporting firm price levels despite earlier correction expectations.
Overall, sentiment in the Indian copper scrap market remains bullish, driven by strong demand recovery, tight supply of quality grades, and sustained global price strength.
Global market update
In overseas markets, sentiment turned firmer alongside the LME rally. Chinese demand resumed strongly post-holiday, providing support to exporters’ asking prices. Sellers, who had earlier held back material anticipating lower prices, returned with higher offers following the rebound.
Global scrap flows remain active, though increasingly price-sensitive, with buyers adjusting procurement strategies to the renewed volatility in exchange-driven markets.
Outlook
Copper demand continues to provide structural support. Tight availability of clean scrap grades and renewed buying interest are likely to keep prices firm. However, near-term volatility may persist, with movements closely linked to LME fluctuations and speculative positioning rather than immediate changes in physical supply fundamentals.
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