BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

India: Copper scrap, rods prices remain rangebound w-o-w, import prices rise

...

Copper

BigMint Bureau

127 Reads

29 Aug 2024, 19:32 IST

India: Copper scrap, rods prices remain rangebound w-o-w, import prices rise

Domestic copper armature prices were assessed at INR 736,000/tonne (t) ($8,770/t) exy-Delhi, reflecting a slight decrease of 0.3% w-o-w. Copper futures on the London Metal Exchange (LME) recently hit a 4-month low, falling to $8,750/t. However, prices have since rebounded to $9,240/t, reaching levels seen in July. Prices of secondary continuous casting rods (CCR) (99%) were at INR 786,000/t ($9,367/t) ex-Delhi, falling slightly by 0.3% w-o-w. Meanwhile, primary CCR were observed at INR 830,000/t ($9890/t), up by 1.1% w-o-w. Imported scrap prices have increased by up to 2.6% w-o-w.

Cautious mood amid supply-side challenges

The copper market is currently experiencing a slowdown, primarily due to supply issues with scrap. Imported scrap prices have surged, making many buyers hesitant to make purchases. While CCR trades are holding at moderate levels, mainly driven by slow demand from the re-rolling sector, activity in finished materials such as wires and tubes remains limited. This reflects a cautious market environment, with buyers reluctant to commit amid high prices and supply constraints.

LME prices rise w-o-w, stocks decline

The price of copper has been steadily rising in recent weeks, recovering from a four-month low reached in early August.

Copper inventories in LME warehouses fell by 5,500 t to 314,250 t this past week. However, stocks are currently at almost a three-year high. Three-month LME copper prices hovered at $9,240/t, rising by 1.2% w-o-w.

Global scenario

China is stepping up its copper purchases from Pakistan, Australia, and Germany, as port disruptions at Damaiyu are starting to reduce after months of delays.

China's demand for motors and specific copper grades such as Millberry, Candy Berry, Cloves, and Birch Cliff from Australia has increased following a period of sluggish activity. The ongoing BHP strike has further heightened concerns about a potential copper shortage, pushing prices upward.

China: Copper scrap imports rise 15% m-o-m in July

China's copper scrap imports stood at 194,360 t in Jul'24, an increase of 15% compared to 169,574 t in Jun. Moreover, imports rose by 20% y-o-y, reaching 1.34 mnt in Jan-Jul'24 from 1.12 mnt in the same period last year. The US remained the leading exporter with 36,178 t, followed by Japan and Malaysia with 20,692 t and 14,038 t, respectively.

India's copper scrap imports rise

The volume of copper scrap imports rose from 32,303 t in June 2024 to 34,032 t in July 2024. This represents a m-o-m increase of approximately 5.3%.

Imported price trends

BigMint's assessment of talk scrap from the United States of America (USA) was at $4,990/t, a 1.8% w-o-w rise. Prices of Middle East-origin scrap, largely from the United Arab Emirates (UAE), were recorded at $4,760/t, up by 3.5% w-o-w.

Copper motor mix scrap prices are being offered at $1,250-1,260/t by sellers based in the European Union (EU) and the United States (US). However, these prices seem to be higher than the bids currently being placed, though BigMint noted traded levels concluding at $1,180-1,200/t.

Trades, offers this week

Copper Millberry from Australia - 99% LME CFR China.

Copper CLOVE No. 1 (99.99%) heard from Australia to CFR Mundra at 98% LME; to China at 97%.

Copper CLOVE No. 2 (98%) from Australia to CFR Mundra at 97% LME; to China at 96%.

Copper Candy Berry heard from Australia to CFR China at 97.25% LME, bid from India at 96.25%.

Copper Brass Honey (2%) traded from Australia to CFR Mundra at 61.5% LME.

Meatballs (20%) from Australia - $1,880/t CFR Chennai.

Copper High-Grade Cables from Australia to CFR Chennai - 93% LME.

Copper Mid-Grade Cables from Australia to CFR Chennai - 91.5% LME.

Copper Low-Grade Cables from Australia to CFR Chennai - 87% LME.

Copper Mix Motors from Australia - $1,125/t.

Copper Mix Motors from USA - $1,200/t.

Burnt Copper imported from USA - 96-96.25% CFR Mundra.

Millberry from USA and UAE - 98.5-99% CFR Mundra.

TALK from USA - 53.25% CFR Mundra.

Birch Cliff from USA - 92% offers; 91.5% bids.

Birch Cliff from UAE - 91.5-91.75% CFR Mundra.

Outlook

Copper prices in the local market are expected to stay strong in the near term. However, trade activities remain slow and are likely to pick up once the rainy season ends in the western and northern regions.