Domestic demand for copper scrap declined this week as producers reduced production amid decreased bookings of copper semis. Copper scrap downstream industries faced a cash crunch as large semi-finished product consumers are yet to clear pending dues.
The index for Berry settled at Rs423,375/mt del India consumer on Wednesday, down by Rs10,958/mt from a week ago. The weekly index for domestic heavy and copper sheet cutting scrap plunged by Rs13,000/mt to Rs423,000/mt and by Rs 14,500/mt to Rs401,000/mt, respectively.
In parts of Delhi, trades were hampered due to ongoing mob violence. Traders in the region were concerned about transactions falling further as recyclers slow down their production ahead of the financial year-end on Mar 31.
The index for copper turnings fell by Rs18,333/mt ($255.98/mt) to settle at Rs387,500/mt and the index for Rs8,333 ($116.82/mt) to Rs406,333/mt.
A decline in domestic copper scrap prices was also driven by a drop in the official three-month LME copper contract. The LME copper contract settled at $5,639.5/mt on Wednesday, down by $106.5/mt from a week ago.
($1=Rs71.66)