India: Domestic, imported copper prices climb w-o-w as LME hovers at 3-month high
...
- Festive season expected to boost inquiries
- Market supply sufficient to meet demand
Domestic copper armature prices were assessed at INR 772,000/tonne (t) ($9,193/t) ex-Delhi, an increase of 2.3% w-o-w, while imported scrap prices increased by up to 3.5% w-o-w. The upswing in offers comes in the wake of copper futures on the London Metal Exchange (LME) hitting a three-month high recently. At the time of reporting, copper futures were recorded at $9,920/t, close to the three-month peak, with similar levels last seen in July.
Prices of secondary continuously cast rods (CCR) (99.90%) were at INR 827,000/t ($9,841/t) ex-Delhi, a marginal rise of 2.4% w-o-w. Meanwhile, primary CCR prices stood at INR 875,000/t ($10,412/t), up by 2.5% w-o-w.
A trader stated, "Despite an adequate supply of scrap, traders are intentionally holding onto material, creating an artificial shortage to drive prices higher. Additionally, the ongoing conflict involving Iran has introduced uncertainty in the market."
A manufacturer noted that "while local market prices have increased, the overall supply of scrap remains sufficient. Yard owners in the western and northern regions have retained stockpiles built up during the monsoon season, particularly in armature and burnt copper."
The demand-supply balance is steady at present, but the recent surge in LME prices is driving up offers, though buyers remain hesitant to raise their bids.
Demand to strengthen in festive season: Historically, from October to December, demand for copper tends to rise due to the festive season. Increased industrial activity during this period is expected to push copper prices upward, which is contributing to a bullish market outlook.
Imported price trends
Pan Pacific Copper, Japan's largest supplier, plans to boost production by 4.4% to 303,700 t. However, Mitsubishi Materials forecasts a 5.7% decline in its copper output to 196,578 t due to scheduled maintenance at its Naoshima plant in the Kagawa prefecture between October-March 2025.
The Japan Copper Stretching Association recently released its medium-term forecast for copper demand till the financial year 2026 (FY'26). The average growth rate for the last four years to FY'26 is 3.4%. Demand is projected to reach 700,000 t in FY'26.
Prices/offers
- Copper motors mix from Europe with 9-10% Cu content was traded at $1250/t.
- Copper motors mix with 10-11% Cu content from the UK was traded at $1260/t CIF west coast.
- Millberry from the US and the UAE was sold at 98.5-99% of the LME price CFR Mundra.
- Talk from the US was heard at 52-52.5% of the LME price CFR Mundra.
- Birch cliff from the US was offered at 92.5% of the LME price, but bids were at 91.5% of the LME price.
Outlook
The short-term outlook for domestic copper prices appears optimistic, as the upcoming Diwali season will likely drive up demand for white goods.
