India's domestic copper prices continue to remain range-bound w-o-w

The copper market in India has been exhibiting a range-bound trend, with prices experiencing a slight decrease w-o-w. However, prices still remain relatively high due to strong demand, primarily because India is currently the major buyer of copper. In contrast, other buyers like South Korea and China appear less active in the market at present.

Also, three-month copper futures, which moved down $300/t on the London Metal Exchange (LME) to $8,400/t currently from $8,700/t a week ago have made prices decrease slightly.

Copper prices on the Commodity Exchange (COMEX) rose by 1.6% to $8,400/t as compared to the previous week.

Over the past few months, the global copper market has been witnessing a significant decline in inventory levels. However, this week it has witnessed a marginal rise w-o-w.

According to data maintained with SteelMint, the inventories in LME-registered warehouses are currently at 59,200 tonnes (t), a rise by 4,750 t w-o-w. However, these are still revolving around 3-month lows. The reduced inventory levels have acted as a counter-balance, preventing a significant drop in prices, SteelMint noted.

Vale's outlook

Brazil's mining giant, Vale's copper production rose sharply by 40% y-o-y to 78,800 t in the second quarter of calendar year 2023 (Q2CY23). This growth can be attributed to the successful expansion of the Salobo -3 plant and an improved performance at the Sossego mine. Q-o-q production increased by 18%. Meanwhile, its copper sales jumped by 43% y-o-y to 73,800 t in Q2CY23, driven by higher production volumes. Sales were up by 18% q-o-q.

Imported market scenario

In the imported market segment, prices of copper motor scrap originating from the US were recently noted at $1,110-1,120/t, reflecting firm levels, CIF Mundra.

Birch cliff offers have been heard at 99% of LME 3-month prices, whereas clove offers are at around 98% of LME. Millberry offer level stands at around 99% of LME prices.

Around 2 containers of copper birch cliff of UAE-origin were traded at 91.5% LME CIF Mundra recently.

Around 3 containers of copper motors mix of US-origin were traded at $1,120/t recently.

Around 40 t of copper motor mix of Australia-origin were traded at $1,100/t CIF west coast India.

200 t of copper cable with 60% recovery of Australia-origin were traded at 93% of LME 3-month prices CIF west coast India.

200 t of copper cable with 41% recovery of Australia-origin were traded at 89% of LME 3-month prices CIF west coast India.

MCX copper prices inch up

Copper prices on the MCX rose 0.3% to INR 723,000/t today w-o-w.

Copper armature scrap prices in India stood at INR 686,000/t, while secondary rod prices fell marginally by INR 3,000-4,000/t w-o-w to INR 727,000/t.

Conclusion

Copper prices have been experiencing a positive movement recently, indicating sort of an uptrend.