The weekly indexes for most of the brass scrap dropped in Delhi and Jamnagar despite a surge in the three-month LME copper contract. Market participants in Delhi reported a slight improvement in demand, while participants in Jamnagar quoted that domestic demand continues to be 15pc lower than usual levels.
Domestic units continue to run at partial production capacity due to weak demand. The demand for brass nozzles in oxygen cylinders and brass parts in ventilators has dropped as COVID-19 cases have reduced.
The three-month LME copper contract rose by $35/mt to settle at $9,252/mt on June 29 from June 22. Buyers in North India reported an increase in imports, while Jamnagar traders shied away on tepid local demand.
The weekly Davis Index for imported Honey brass settled at Rs417,500/mt del Delhi consumer on Wednesday, down by Rs10,500/mt ($141.24/mt) while in Jamnagar, the index settled at Rs435,625/mt del Jamnagar consumer, down by Rs3,208/mt ($43.15/mt).
Participants heard fresh bids for brass billets at $5,410/mt cfr China port but those deals at these levels are not acceptable for manufacturers amid elevated input costs.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs401,000/mt, down by Rs8,000 ($107.63/mt) del Delhi consumer. The weekly Index for Honey domestic origin (Vilayati) settled at Rs407,625/mt del Jamnagar consumer, down by Rs7,375/mt ($99.22/mt).
($1= Rs74.33)