India: Imported, domestic copper prices fall w-o-w as LME slides after 3-month high

• Festive season likely to drive increased inquiries
  
  
• Current supply levels sufficient to cater to market needs
  
  

Domestic copper armature prices were assessed at INR 750,000/tonne ex-Delhi, a decrease of 3% w-o-w, while imported scrap prices decreased by up to 2% w-o-w. The downfall in prices comes in the wake of copper futures on the London Metal Exchange (LME) slowing down after hitting a three-month high recently.

At the time of reporting, copper futures were recorded at $9,650/t, down 2.5% from three-month peak.

Prices of secondary continuously cast rods (CCR) (99.90%) were at INR 806,000/t ($9,598/t) ex-Delhi, a marginal down of 2.8% w-o-w. Meanwhile, primary CCR prices stood at INR 855,000/t ($10,181/t), down by 2.6% w-o-w.

A producer source said, " Copper semi-manufacturers have reduced their purchasing activities, as they have already secured sufficient materials following the monsoon season. They are currently maintaining adequate stock levels for production and are opting to wait for further price declines before making additional purchases".

LME prices fall, stocks decline

Three-month LME copper prices are currently at $9,660/t. Prices of copper fell in recent week, Copper inventories in LME warehouses fell by 4,950 t to 294,820 t this week.

Steady scrap supply despite price drop

A manufacturer mentioned that although local prices have dropped, the supply of scrap remains adequate. Yard owners in the western and northern regions have kept stockpiles from the monsoon season intact, maintaining sufficient availability.

Demand to strengthen in festive season

A trader source stated: "The demand-supply balance remains stable, but recent increases in LME prices have pushed up offers temporarily. Now that the rally has eased, procurement can resume ahead of Diwali".

Imported price trends

Talk originating from the US was assessed at $5,150/t, while talk from the Middle East was priced at $4,860/t, both down by nearly 1.8% w-o-w CFR west coast, India. Offers from Columbia were heard at 52.75% of the LME CFR Chennai.

BigMint's assessments shows copper motor mix USA origin was recorded at $1,170/t CFR Mundra, down 1.7% w-o-w.

Prices/offers for the week

Mill berry USA 98.5-99% CIF Mundra.

Australia mill berry sold to CIF China at 97.5%.

Mill berry UAE 98% CIF Mundra.

Copper motors Australia to CIF Taiwan, sold mix material at $1180/t.

Meat balls 20% USA TO CIF Vizag at $1860/t.

Candy berry USA 96.5-97% CIF Mundra.

US Talk 52.5%: Offered at 54%

UAE Talk: 48.75%

Australia birch cliff with 94% purity is traded at 95% LME.

USA Birch Cliff Offers: 95%, USA Birch Cliff Bids: 93% LME

Copper Mill berry from Australia - 97.5% LME CFR Chennai

Copper CLOVE No. 1 (99.99%) from Australia to CFR Mundra at 93% LME

Copper CLOVE No. 2 (98%) from Australia to CFR Mundra at 92% LME

Copper Candy Berry from Australia to CFR Mundra at 96.5-96.75% LME

Copper brass honey 2% from Australia to CFR Mundra at 60.5% LME.

Meat balls 20% From Australia - $1850/t - CIF Chennai

Copper High grade cables from Australia CFR Chennai - 93% LME

Copper mid grade cables from Australia CFR Chennai - 91% LME

Copper low grade cables from Australia to CFR Chennai - 88% LME

Copper mix motors Australia - $1150/t CIF Chennai.

Copper mix motors EU $1180/t CIF West coast.

Outlook

The short-term outlook for domestic copper prices remains positive, with strong demand anticipated during the upcoming Diwali season, particularly for white goods.