India: Copper scrap prices fall sharply, aluminium stable

Copper scrap prices in India edged down while aluminium scrap prices remained unchanged today. Similarly, three-month futures on the London Metal Exchange (LME), too, dipped. Copper armature scrap prices dropped sharply by INR 6,000/t to INR 698,000/t. On the other hand, aluminium scrap prices remained stable.

Following the downward trend, copper and aluminium prices on the Multi Commodity Exchange of India Limited (MCX) witnessed a slight correction by 0.15% and 0.07% d-o-d, respectively. However, zinc edged up marginally by 0.02% while lead remained stable.

Copper production in Peru surged in March impacting global market and prices. According to the country's energy and mining ministry, copper production rose by 20.4% compared to the same period last year, reaching a total of 219,275 t.

Following the announcement of increased copper production, LME prices dropped 2% falling below the $8,500/t threshold.

This downward trend in prices has had a ripple effect on the local market, resulting in decreased copper prices in Peru. This development has raised concerns among local mining companies, as they heavily rely on favourable copper prices to generate revenue and sustain their operations.

LME copper futures fell sharply by 1.94% to below $8,311/t at the time of writing. Stocks on the LME were recorded at 75,375 t yesterday, up 3,700 t compared to the last trading day. Overall, slow demand persisted in both domestic and international markets.

Aluminium

India's domestic aluminium scrap prices remained stable d-o-d today. Tense prices stood at INR 163,000-164,000/t while utensil prices were at INR 174,000/t exy Delhi. The price cut announcement by major producers today did not have any impact on the domestic scrap market.

According to sources, fewer transactions took place today largely due to a sharp downfall in futures prices which were assessed at $2,268/t at the time of reporting. Moreover, prices fell by $50/t w-o-w. As a result, sellers have become increasingly cautious, adopting a wait-and-watch approach to assess the situation before taking positions.

China's social inventory of aluminium billets has reached 157,700 t, up 15,600 t w-o-w. This can be attributed to the influx of billets during the Labour Day holidays and insufficient pre-holiday stockpiling.