India: Domestic, imported copper prices rise w-o-w following futures upswing

Domestic copper armature prices were assessed at INR 744,000/tonne ($8,950/t) ex-Delhi, an increase of 2.1% w-o-w. Copper futures on the London Metal Exchange (LME) recently hit a two-month high, rising to $9,550/t, reaching levels last seen in July.

Prices of secondary continuous casting rods (CCR) (99.90%) were at INR 794,000/t ($9,550/t) ex-Delhi, rising slightly by 1.8% w-o-w. Meanwhile, primary CCR prices stood at INR 832,000/t ($10,000/t), up by 1.5% w-o-w. Imported scrap prices also increased by up to 0.9% w-o-w.

Domestic trend

"Talk scrap is being supplied locally to regions like Hyderabad, Bangalore, and Chennai, with limited supply to the northern region, apart from Gujarat, due to unviable prices," said a trader.

"Other scrap supplies remained adequate, as yard owners in west and north regions held stocks accumulated during the monsoon, particularly for armature and burnt copper", said a manufacturer.

The demand-supply balance is currently stable, but the recent rally on the LME is pushing offer prices higher, while buyers are reluctant to increase their bids, Additionally payment delays, which have extended from 7-14 days to 20-25 days, are slowing down sellers and creating a significant constraint in the market.

How is global copper market ?

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% rise w-o-w and was currently at $9,560/ levels.

Copper inventories in LME warehouses fell by 2.1% to 305,250 t this past week.

Global scenario

The Asian copper rod market is experiencing a seasonal uplift, driven by the Mid-Autumn Festival, which has boosted customer sentiment across the region. This cultural celebration often results in increased consumer spending and industrial activity. Consequently, demand for copper rods has risen, particularly from key sectors like electronics and consumer durables.

The Chinese market remained closed due to the autumn holidays, leading to thin trading volumes as China, the largest market for base metals, observed a public holiday. However, with the reopening of the market, both prices and sentiment are expected to remain positive.

BigMint's imported price trends

BigMint's assessment of talk scrap from the US was at $4,950/t, a 2.1% w-o-w rise. Prices of Middle East-origin scrap, largely from the United Arab Emirates (UAE), were recorded at $4,720/t, up by 1.5% w-o-w.

Copper motor mix scrap is being offered at $1,200/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 $1,170-1,180/t CFR Mundra and $1,180/t CFR Qasim.

China market overview

China's copper cathode (99.95%) prices were at RMB 74,670/t ($10,570/t) a rise of 2% w-o-w as against RMB 73,530/t ($10,405/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; to China at 96.5%.

Copper clove no. 2 (98%) from Australia to CFR Mundra at 95.5- 96% LME; to China at 95.5%.

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% LME.

Meatballs (20%) from Australia- $1,750-1760/t CFR Mundra.

Meatballs (20%) from the US- $1,790-1800/t CFR Mundra.

Copper mix motors from the US - $1,160-1,180/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% offers; 91.5% bids.

Birch cliff from the UAE - 91.5-91.75% CFR Mundra.

Outlook

Domestic copper prices are expected to stay strong in the near-term, with the upcoming Diwali season driving increased demand for white goods.