India's copper prices fall w-o-w on drop in futures market

Domestic copper armature prices have been reported at INR 670,000/t, exy-Delhi, fell w-o-w, reflecting a marginal decrease of 1.1%.

Prices of secondary CCR rods (99%) were at INR 710,000/t ex Delhi today, fell 1.1% w-o-w. Meanwhile, primary CC rods were observed at INR 738,000/t, down 0.9% w-o-w, as LME prices dropped 2.2% to $8,350/t as against $8,534/t last week.

Abundant copper supply, from raw materials to finished products in the market, was meeting demand, experiencing slight decreases.

Imported scrap prices have decreased by 2.6% w-o-w. Notably, mixed motor scrap from the United States has fallen by $30/t to $1,140/t. However, buyers are exercising caution in response to a bid-offer disparity of $50-$60/t from the past few weeks.

Nevertheless, prices of Middle East-origin brass honey scrap (4%), witnessed a decline of 2.6%, settling at $5,415/t w-o-w.

Meanwhile, talk scrap from the US is being offered in the range of 53-53.5% of three-month LME futures, but actual trades happening at 52.75-53% of three-month LME, BigMint assessment of USA-origin talk scrap was at $4,450/t, down by $105/t w-o-w, Middle East origin largely from the UAE prices was recorded at $4,270/t, fell by $140/t w-o-w.

Coming to the future exchange market in India which is mostly influenced by MCX, where copper cathode prices experienced a 0.5% weekly decline and recorded at INR 726,000/t against INR 728,000/t for the February 2024 contract.

The global market exhibited a downward trend, particularly evident in the COMEX market.

Copper prices on the Commodity Exchange (COMEX) fell by 3.2% to $8,205/t from $8,469/t compared to the previous week's closing.

Compounding the challenges, the surge in sea freight charges following the Red Sea incident has played a role in the market's instability, resulting in price discrepancies of up to $50-60/t among trade participants, especially for certain grades.

Trend in production from top copper producer

Codelco, the world's top copper producer, in Chile, reported a decline in production at its mines to 1.325 mnt in 2023, However, there is an expectation of a modest recovery in the upcoming year, with production at Codelco's mines projected to increase to 1.353 mnt in 2024, as per latest reports.

Recent offers, deals

Mill berry from UAE is currently offered at 99%, and USA offers stood at 98.5% CIF WC India.

UK Brass honey trade prices stood at 62.5% of LME prices.

Malaysian-origin aluminium talk offers stood at $4,600/t. However, bids were $80-100/t lower to CIF WC India.

Birch-Cliff scrap has traded at an average of 91% LME from UAE to CFR Mundra, Qty. 600 t, CIF WC India.

Copper CCR was traded at INR 710,000/t exw Delhi, 15 t, excluding GST.