India’s weekly imported copper scrap prices rose by 5pc in line with the increase in the LME copper futures contract. Importers, however, preferred to buy from the domestic market where prices were lower by 7-8pc than import scrap offers.
The weekly Davis index for #1 copper wire (Berry) settled at $6,412/mt cfr India port, up by $308/mt as LME copper gained significantly amid fears of a supply shortage from Chile. The rising COVID-19 cases caused operational disruptions for major miners. China, on the other hand, continued to aggressively buy copper concentrates, unwrought, and refined copper.
The surge in LME copper futures contract proved unfavorable for Indian copper mills, who resorted to domestic copper scrap trades. The weekly index for #1 wire & tube (Berry/Candy) settled at $6,249/mt cfr India port, up by $300/mt, and the weekly index for #2 copper (Birch/Cliff) settled at $5,728/mt cfr India port, up by $275/mt.
Sale of copper ingots from India and Pakistan to China continued at 95-96pc of LME copper. The index for copper ingots settled at $6,225/mt cfr China port, up by $253/mt from a week ago.
The weekly index for imported copper-bearing motors (Elmo) settled at $643/mt cfr India port, marginally up by $3/mt. Buyers received offers around $700/mt, however, prevailing domestic demand restricted buyers from bidding above $620-$630/mt. Scrap yards in Mandi Gobindgarh faced closure again amid pollution concerns from the authorities. The weekly index for Elmo settled at $705/mt cfr Pakistan port, down by $10/mt, with only a few takers.
The official three-month LME copper contract settled at $6,510/mt, Wednesday, up by $313/mt from a week ago, shooting past January levels and completing its COVID-19 related recovery.