The weekly Davis Index for #1 copper wire (Berry) settled at $9,555/mt cfr India port, down by $305/mt in sync with a decline in copper prices on LME. Secondary manufacturers in Asia stayed away from new purchases as several regions are experiencing extensions in lockdowns. Exporters in the US reported continued demand in the EU and China, but weak demand in Asia.
The three-month LME copper contract dropped by $408/mt to settle at $10,138/mt on May 19 from the prior week. On May 12, the three-month copper contract had advanced by $555.5/mt to $10,546/mt from the preceding week.
The weekly Davis Index for #copper wire and tube (Berry Candy) settled at $9,121/mt, down by $367/mt cfr India port.
The weekly Index for #2Copper Birch cliff settled at $8,516/mt down by $448/mt cfr India port prior week. Several participants reported spreads for Birch Cliff unchanged from the prior week. Production cuts in the domestic market kept buyers away despite a decline in prices.
Participants reported that several Asian countries continued to grapple with the lockdown situation due to the second wave of the COVID-19 infections. Participants expect spreads may tighten if the three-month LME copper and the situation in Asia fails to recover. Meanwhile, sources report that Chinese participants have become active to secure clean copper scrap. Only a few deals were reported in Pakistan as buyers preferred to wait for a clear picture of the price direction.
The weekly Davis Index for yellow brass cfr India port settled at $5,804/mt, down by $21/mt from the preceding week. Meanwhile, sources report that Chinese participants are offering to pay up to 60.5pc of the three-month LME copper for cleaner yellow brass scrap. The weekly Davis Index for yellow brass settled at $5,905/mt cif Asia port, up by $55/mt despite the drop in LME copper.
Pakistan and China
Both Pakistan and Indian exporters heard the Chinese bids at 94pc from 93.5 to 95.5pc of the three-month LME copper contract for copper ingots cfr China port from the prior week. Indians reported weak demand for copper ingots while traders in Pakistan reported steady demand. Indian manufacturers reported 25 to 30pc domestic demand and scrap yards continued to operate at 25pc of their usual capacity due to the lockdown situation.
The weekly Davis Index for Brass Billets cfr China port settled at $6,050/mt from $5,965/mt, up by $85/mt from the prior week.