The weekly indexes for the brass scrap in Delhi dropped by $20.10-43.56/mt, depending on the grade, as traders lowered offers amid a decline in the three-month copper contract on LME last week. In Jamnagar, however, prices for brass scrap rose in the range of $11.16-20.10/mt. Trading was thin on weak domestic demand and slow exports to China.
Market participants in Delhi reported a revival of demand. Traders in North India are trying to boost sales by lowering prices to avoid losses fearing a further decline in scrap.
Chinese bids for brass billets were very few and at 60pc of the three-month LME copper contract, which were unworkable for manufacturers amid firm brass scrap offers. Asking prices for imported brass scrap at around 61pc of the three-month LME copper for material from the US. Domestic units are running at partial production capacity due to weak demand.
The three-month LME copper contract dropped by $100.5/mt to $9,244.5/mt on July 20 from July 13. In the preceding week, the three-month LME copper contract dropped by $213.5/mt from $9,345/mt on July 13. Traders in North India reported improvement in imported scrap demand, while Jamnagar buyers were largely away from imports on weak demand and the depreciation of the Indian currency against the US$.
The weekly Davis Index for imported Honey brass, Wednesday, settled at Rs425,500/mt del Delhi consumer, down by Rs1,500/mt ($20.10/mt) while in Jamnagar, the index settled at Rs440,833/mt del Jamnagar consumer up by Rs833/mt ($11.33/mt).
Participants heard fresh bids for brass billets at $5,546.5/mt from $5,513.54/mt cfr China port, up from the prior week.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs409,500/mt, down by Rs3,250 ($43.56/mt) del Delhi consumer. The weekly Index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs415,500/mt del Jamnagar consumer up by Rs1,500/mt ($20.10/mt).
($1= Rs74.60)