The weekly Davis Index for #1 copper wire (Berry) settled at $9,330/mt cfr India port, down by $225/mt in sync with the copper prices on LME. Secondary manufacturers are resisting new bookings amid little clarity on whether the COVID-19-related restrictions will be eased or extended beyond May 30.
Exporters in the US reported continued demand from the EU and China and slow demand from other Asian countries despite a drop in scrap prices, which fell in sync with the dip in LME copper in the last two weeks. The three-month LME copper dropped $159.5/mt to settle at $9,978.5/mt on May 26 from the prior week.
The weekly Davis Index for #copper wire and tube (Berry Candy) settled at $8,980/mt from $9,121/mt, down by $144/mt cfr India port.
The weekly Index for #2Copper Birch Cliff settled at $8,432/mt, down by $84/mt cfr India port. Several participants reported trades of Birch Cliff at 85pc of the three-month copper contract on LME, up from 84pc from the prior week.
Traders feel purchasing imported Berry would be a viable option in the present situation but buyers are waiting for further price direction. While several Asian countries continue to grapple with lockdowns due to the second wave of the Covid-19 infections. On the other hand, China is actively seeking cleaner copper scrap grades. The participants from Pakistan reported thin trades with buyers preferring to wait for a clearer price direction.
The weekly Davis Index for yellow brass cfr India port settled at $5,644/mt, down by $144/mt. The weekly Davis Index for yellow brass settled at $5,638/mt from $5,905/mt cif Asia port, down by $267/mt despite the drop in LME copper.
Exporters from the US lowered yellow brass offers by 2.47pc to 59pc of the three-month LME copper prices from the prior week.
Pakistan and China
The weekly Davis Index for copper ingots settled at $9,463/mt, down by $67/mt cfr China port. Indians reported weak demand for copper ingots while traders in Pakistan reported steady demand.
Domestic demand in India has gone down to 25- 30pc. Also, yards are operating at 25pc lower capacity due to lockdown. The weekly Davis Index for brass billets cfr China port settled at $5,875/mt from $6,050/mt, down by $175/mt.