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India: Domestic copper prices edge down w-o-w amid lower trades

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Copper

BigMint Bureau

134 Reads

15 Nov 2024, 19:06 IST

India: Domestic copper prices edge down w-o-w amid lower trades

Semis manufacturers hold sufficient stocks

Buyers hold back, await further price corrections

India's domestic copper armature prices were assessed at INR 750,000/tonne ex-Delhi, a slight decrease of 2% w-o-w, while copper motors mix scrap prices decreased by 2.7% w-o-w.

Prices of secondary continuously cast rods (CCR) (99.90%) were at INR 800,000/t ex-Delhi, down 2.7% w-o-w. Meanwhile, primary CCR prices stood at INR 810,000/t, down 4.3% w-o-w.

A producer explained that copper prices declined w-o-w due to reduced purchasing activity from semis manufacturers. Many had already stocked sufficient materials before Diwali, ensuring adequate inventory for production. With no immediate need for additional purchases, they are holding back, waiting for potential price corrections amid ample supply in the market.

A trader noted, "Copper demand, which typically slows in December, appears to have declined earlier this year. This is due to higher prices in October, which followed a spike in September. This has dampened buying interest."

LME copper volatile

Three-month copper prices on the London Metal Exchange (LME) were volatile. These dropped to a two-month low of $8,922/t on 14 November from $9,865/t on 30 September. However, these rebounded to over $9,000/t today.

Copper prices declined sharply this week, driven by the strengthening US dollar following Donald Trump's presidential election victory and weaker demand from China.

China eases restrictions on recycled copper imports

China is simplifying recycled copper import processes by consolidating raw material categories from five to three - copper wire, mixed copper materials, and nodules. A renamed "copper alloy materials" category will include copper-nickel and high-copper items. Strict copper content standards remain, with Birch Cliff scrap requiring 97% purity versus Asia's 95%. Minimal quality differences between Chinese grades drive higher Birch Cliff import prices, which generally reach 94-95% of the LME rate compared to 90-92% in Asia.

Price trends

BigMint's assessment of US-origin copper motor mix was at $1,100/t, a fall of $30/t w-o-w.

Europe

Millberry scrap was at 97.5-98% of LME cash prices.

Europe no. 1 (Berry/Candy) scrap was traded at 96.5-97.5% of LME prices.

Europe no. 2 (Birch/Cliff) scrap was priced at 91-92% of LME cash prices.

Outlook

The copper market outlook remains subdued, with active procurement largely completed before the festive season. Small-volume trades are expected to provide liquidity. The market is also adopting a cautious approach, awaiting clarity on tariff policies, including potential announcements from Donald Trump early next year 2025.