India: Copper prices edge lower, w-o-w, on soft demand

Domestic copper prices trended lower w-o-w. Copper armature scrap prices edged down by 5.67% to INR 598,000/t ($7,525/t) exy-Delhi today as against INR 634,000/t ($7,978/t) on 4 July. Prices of copper wire rods (primary and secondary) fell by 3.76% and 4.86%, respectively, to INR 664,000/t ($8,355/t) and INR 645,000/t ($8,116/t) exw-Delhi.

On the London Metal Exchange (LME), three-month copper contract prices also witnessed a downtrend over the week, falling by 3% to $7,806/t on 8 July as against 1 July. Copper stocks jumped nearly 5% to 133,025 t.

On Multi Commodity Exchange (MCX), copper cathode prices trended lower to INR 660,800/t ($8,315/t), down 2.7%, on 8 July as against INR 679,050/t ($8,545/t) on 1 July.

Why are copper prices edging lower?

Poor demand: Market participants have informed that due to poor demand there are limited or zero buying enquiries at the moment as buyers are holding their bids, looking for prices to slide further.

Seasonal slowdown: As monsoon has arrived in India, construction activities have been impacted. This is a key reason for bearish sentiments in the market.

Currency exchange: The Indian currency ended trading at 79.42 against the US dollar early morning today. The US dollar index is currently at 106.80, hovering around a two-decade high on rising inflation.