India : Copper scrap imports rise 25% m-o-m in May'24

• Jamnagar sees increase in scrap consignments
  
  
• Germany's copper scrap exports surge 243%
  
  

India's copper imports increased from 21,000 tonnes (t) in April 2024 to 26,500 t in May 2024, marking an increase of around 25%. In a significant development Jamnagar, a brass manufacturing hub, saw an increase in scrap consignments. Overall, Gujarat, brass honey scrap imports increased by 39% m-o-m from 5,422 t in April to 7,531 t in May.

In April, prices of copper for three-month delivery on the London Metal Exchange (LME) rose from $9,600/t to $10,240/t in May. Thus, there was an increase of approximately 7% m-o-m.

Despite price increase on the LME, imports increased in May, 2024 as participants expected market to go up post-election.

In April, Germany led the way in copper scrap exports, totaling 3,300 t. By May this figure rose 7% to 3,500 t, indicating a slight increase in export activity, followed by the UK . There was a positive trend in copper scrap exports for Germany, the UK, Saudi Arabia and the US during this period.

Germany has been continuously increasing exports of copper scrap y-o-y. Its exports of copper scrap increased by 243% compare to the same month of last year from 1,027 t in May 2023 to 3,524 t in May 2024, indicating consumption has increased.

Grade-wise scrap imports

In May, copper scrap imports showed upward movements in all grades. Brass honey remained the top imported grade at 9,508 t, up by 26% m-o-m followed by druid, berry, birch, barley etc.

Particularly, motor scrap has increased 18% m-o-m from 335 t in April to 394 t in May, but it showed a decline of 22% from the same month of last year.

Market dynamics

In April, while sellers took advantage of high LME prices to offer higher rates, buyers managed to secure birch cliff at reasonable prices. Sellers from western countries initially offered prices at 92-92.5% of LME prices. However, after negotiations buyers were able to secure deals at 91-91.5% of LME prices. This pushed birch cliff imports higher compared to other grades.

Why did brass honey scrap imports increase?

However, the top-imported brass honey scrap saw an increase because buyers in the Far East were bidding $80-90/t more than those in India before May, 2024. Indian buyers expecting the election results to be positive, started bidding at competitive rates for the material.

As a result, material from the Middle East, and a few suppliers from the western countries preferred diverting material to India at over 63% of LME prices, leading to a rise in imports.

However, the UK sellers were able to supply material at 62% of LME leading to a 72% increase in volumes from this region. Germany led with 3,524 t, slightly increasing by 7%.

BigMint's assessment of domestic copper armature average price for May has been reported at INR 809,086/t exy-Delhi, an increase of 5% m-o-m.

Copper scrap imports by region

In May, copper scrap imports showed significant regional variations in India. Delhi saw an increase of 6% m-o-m, with imports rising from 1,322 t in April to 1,402 t, as the major contributions were from birch and berry material, totaling more than 1,000 t.