The weekly Davis Index for imported Honey brass Wednesday fell by Rs5,000/mt ($66.95/mt) from the prior week to settle at Rs305,000/mt del Jamnagar consumer pressured by low demand despite a rise in LME copper contracts. Few deals concluded this weeks as secondary manufacturers shirked away from booking scrap citing a steep rise in the prices, said traders. Demand from downstream industries remained subdued in markets across India.
The three-month official copper contract rose by $14/mt to settle at $6,505/mt on July 21, up from $6,491/mt in the prior week.
Alloy manufacturers refused to accept new export orders for brass billets after Chinese buyers failed to match their offer of $4,100/mt cfr China rate. Manufacturers’ margins have narrowed as input cost continues to remain unchanged from the prior week.
Trades for imported honey cfr India were heard at $3,850-3,900/mt, flat from the prior week supported by steady demand for brass rods. Demand for the brass rods from ventilators and auto component makers has slow but remains steady, said, manufacturers.
In Jamnagar, India’s brass manufacturing hub, some companies were forced to cut production amid a rise in COVID-19 infection. The weekly Davis Index for Honey brass domestic origin (Vilayati) dropped by Rs5,000/mt from the prior week to settle at Rs295,000/mt del Jamnagar consumer.
Few brass scrap trades were reported in Delhi this week. The Davis Indexes for imported Honey brass and Honey domestic origin (Purja) fell by Rs12,000/mt each from the prior week to settle at Rs292,000/mt and Rs282,000/mt del Delhi consumer, respectively.
Davis Index heard trades for imported Honey brass at Rs313,000/mt del Delhi consumer and for Honey domestic origin (Purja) at Rs302,00mt del Delhi consumer. Traders, however, did not confirm these deals and shared that demand has consistently dropped in the last two weeks.
($1= Rs74.68)