India's imported copper scrap market exhibits mixed trend

The imported copper scrap market displays mixed sentiments due to concerns about availability of materials. This is happening despite the downward trend on the London Metal Exchange (LME) and ongoing restrictions in trading activities.

Notably, mixed motor scrap from the US has been maintaining a price range of $1,150-1,170/t. However, caution prevails among buyers due to a bid-offer difference of $50-$60/t observed over the past few weeks.

Sellers are presently quoting prices for Brass honey at 65% of LME prices, while buyers are submitting bids within the range of 63-63.5%. Through additional negotiations, some buyers are willing to agree to a maximum of 64%, as reported by sources.

According to sources, sellers are ready to supply material. However, due to limited buyers in the Indian market, they are choosing to process and dispatch materials to the Far East. As a result, they are earning premiums of around 1-2%.

Western suppliers have already committed to future deals with other countries, making them less inclined to supply to India at the moment. China, with more competitive bids, is securing the material, as per information gathered by BigMint sources.

Despite mixed sentiments, the price of Middle East-origin brass honey scrap (4%) witnessed a significant rise of $100-$110/t, settling at $5,480/t w-o-w.

Meanwhile, talk scrap from the US is trading in the range of 53% of three-month LME futures, with actual trades happening at 52-52.5% of three-month LME, SteelMint assessment of USA-origin talk scrap was at $4,440/t, up $30/t w-o-w, Middle East origin prices were recorded at $4,230/t, firm w-o-w.

Coming to the future exchange market in India, which is mostly influenced by MCX, copper prices experienced a 0.3% weekly rise and were recorded at INR 717,000/t against INR 715,000/t for the January 2024 contract.

India market

Domestic copper armature prices have been reported at INR 668,000/t ex-Delhi, firm w-o-w, whereas imported scrap prices have risen marginally by $10-20/t specifically for Brass Honey scrap.

Prices of secondary CCR rods (99%) were at INR 711,000/t ex Delhi today. However, prices remain at range-bound levels. Meanwhile, primary CC rods prices were at INR 736,000/t, up 0.6% w-o-w, as LME prices rose 3.6% to $8,565/t as against $8,270/t last week.