India: Domestic, imported copper prices rise w-o-w as LME hits 3-month high
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Domestic copper armature prices were assessed at INR 760,000/tonne ($9,089/t) ex-Delhi, an increase of 2.2% w-o-w. Copper futures on the London Metal Exchange (LME) recently hit a three-month high, rising to $9,940/t -- similar levels were last seen in July.
Prices of secondary continuous casting rods (CCR) (99.90%) were at INR 815,000/t ($9,474/t) ex-Delhi, rising slightly by 2.6% w-o-w. Meanwhile, primary CCR prices stood at INR 865,000/t ($10,345/t), up by 4% w-o-w. Imported scrap prices also increased by up to 5.9% w-o-w.
China's stimulus measures impact LME prices upwards
China's central bank took steps to boost the country's sluggish economy, leading to a rebound in certain commodity prices as prospects for the critical construction and property sectors improved. The People's Bank of China (PBOC) announced a 50-basis-point reduction in the reserve requirement ratio (RRR) for banks, alongside other measures aimed at supporting the property market amid the ongoing economic slowdown.
Domestic trend
"Talk scrap is primarily being supplied to southern regions such as Hyderabad, Bangalore, and Chennai, with only limited distribution to the northern region, except for Gujarat, where prices remain unfavourable," a trader noted.
"A manufacturer stated. Although prices in local markets moved up, other scrap supplies have remained sufficient, as yard owners in the western and northern regions retained stockpiles accumulated during the monsoon, especially in armature and burnt copper,"
The demand-supply balance is steady at present, but the recent surge in LME prices is driving up offers, while buyers remain hesitant to raise their bids. Additionally, payment delays, which have stretched from 7-14 days to 20-25 days, are slowing down sellers and causing a major bottleneck in the market.
Global copper market overview
LME prices rise w-o-w, stocks decline
Prices of copper have been steadily rising in recent weeks, recovering from a four-month low reached in early August. However, three-month LME copper prices saw a 4.5% rise w-o-w and was currently at $9,560/ levels.
Copper inventories in LME warehouses fell by 1,570 t to 303,350 t this past week.
Talk originating from the US was assessed at $5,080/t, while talk scrap from the Middle East was priced at $4,750/t, both up by up to 2.6% w-o-w, CFR West Coast, India, and offers from Columbia heard at 52.25% to CFR Chennai.
Copper motor mix scrap is being offered at $1,260-1,280/t by sellers based in the European Union (EU) and the US. However, these prices seem to be higher than the bids currently being placed, though BigMint noted traded levels concluding at $1,240-1,250/t CFR Mundra and $1,250-1,260/t CFR Qasim.
India: Copper scrap imports drop m-o-m in Aug'24
India's copper scrap imports experienced a slight 3.7% m-o-m decline, with August's volumes at 32,770 tonnes (t) compared to July's 34,000 t. This dip suggests a possible moderation in demand and preference for imports of substitutes such as cathodes and anodes, which saw an m-o-m rise.
China market overview
China's copper cathode (99.95%) prices were at RMB 77,380/t ($11,038/t) a rise of 3.6% w-o-w as against RMB 74,670/t ($10,650/t) in the previous week.
Trades, offers this week
Copper millberry from Australia - 97.5-98.5% LME CFR China.
Copper clove no. 1 (99.99%) heard from Australia to CFR Mundra at 97.5-98% LME.
Copper clove no. 2 (98%) from Australia to CFR Mundra at 95.5- 96% LME.
Copper candy berry heard from Australia to CFR China at 96.25-97% LME.
Copper brass honey (2%) from Australia to CFR Mundra at 61.5-62% LME.
Copper mix motors from the US - $1,200-1,250/t CFR Mundra.
Burnt copper imported from the US - 96.25-97% CFR Mundra.
Millberry from the US and the UAE - 98.5-99% CFR Mundra.
Talk from the US - 52-52.5% CFR Mundra.
Birch cliff from the US - 92.5% offers; 91.5% bids.
Outlook
The near-term outlook for domestic copper prices remains positive, with the approaching Diwali season expected to boost demand for white goods.
