India: Copper prices rebound w-o-w on LME gains

• Semis production picks up, scrap demand rises
  
  
• Prices increase as mills ramp up procurement
  
  

India's copper prices rose w-o-w, as per BigMint's latest assessments. Domestic copper armature prices stood at INR 750,000/tonne (t) ex-Delhi, up 0.9% w-o-w, while tags of copper motors mix scrap were firm w-o-w.

Prices of secondary continuously cast rods (CCR) (99.90%) were at INR 805,000/t ex-Delhi, up 1.5% w-o-w. Meanwhile, primary CCR stood at INR 830,000/t, up 1.8% w-o-w.

The rise in India's copper prices followed an increase in three-month London Metal Exchange (LME) prices. Copper tags on the LME edged up by 2% w-o-w to $9,248/t.

A source stated, "The copper market has shown signs of revival after the New Year holidays, with semi-finished product manufacturers resuming their purchasing activities. Having secured sufficient materials post-monsoon, many had scaled back buying. However, with production needs picking up again, there is renewed demand for scrap. This has driven copper prices higher in local markets, as mills ramp up procurement in response to the increased buying activity."

Additionally, US-origin copper motor mix was at $1,130/t, stable w-o-w. US-origin meatball scrap (20% purity) was at $1,720/t CIF Vizag.

India's copper scrap imports up 4.2% y-o-y in CY'24

In CY'24, India imported 0.32 million tonnes (mnt) of copper scrap, a 4.2% increase compared to the 0.30 mnt imported in CY'23.

India relies heavily on copper scrap imports due to limited domestic scrap generation. Approximately 40% of the country's copper demand is met through scrap.

Global copper market overview

China has significantly increased its copper purchases, sourcing motors from Pakistan and premium grades from Australia. Notably, Australia has been securing premium prices from China due to the superior purity of its copper compared to other suppliers. This surge in China's buying activity has garnered considerable attention in global markets.

Outlook

Copper demand is expected to remain strong, supported by increased buying and improved LME levels. However, if Duty-free scrap imports proposal gets approved in the upcoming budget than it could lower raw material costs for manufacturers, enhancing the competitiveness of domestic industries and fostering further growth in the sector.