India’s weekly imported copper scrap prices rose by 3pc on a 3.4pc increase in the official three-month LME copper contract amid a shortage of supply.
The Davis Index for Berry (#1 copper wire) settled at $5,439/mt cfr India port, Thursday, up by $160/mt from a week ago. The weekly index for Berry/Candy (#1 wire and tube) settled at $5,301/mt cfr India port, up by 4,155/mt and the index for Birch/Cliff (#2 copper) settled at $4,859/mt cfr India port, up by $142/mt. Indian mills and traders mainly bought #2 copper and mixed copper amid a shortage of copper scrap supply from the US and European markets. Scrap generation and processing was hit in the region due to COVID-19 related shutdowns. Indian copper scrap importers competed with Chinese buyers who have been buying copper scrap more aggressively and at more higher prices. India at present is not a preferred destination for many sellers due to a persisting conflict between the scrap recycling industry and the shipping lines.
Indian and Pakistani copper ingot manufacturers received better prices for their copper ingots at 97.5pc of LME price cfr China port. Thus, the rise in copper prices would exert lesser pressure on their pockets. Prices, however, were not good enough to make these sales viable, as the earlier inventories of copper scrap bought in Jan-Feb was priced 12pc higher than present rates, and is currently in the production cycle. But, alloy makers continued sales to increase liquidity. China’s demand for copper ingots and brass billets remains high, along with a healthy demand for copper ores, refined copper and copper scrap.
The weekly index for imported motors (Elmo) settled at $635/mt cfr India port, Thursday, up by $5/mt and at $623/mt cfr Pakistan port, up by $10/mt. Motor prices received a push from imported ferrous scrap prices which rose by $5-10/mt from a week ago, along with the increase in the LME copper futures contract.
The official three-month LME copper contract settled at $5,522/mt, Wednesday, up by $180/mt from a week ago with five consecutive day gains. Copper futures price has recovered by 19.4pc after hitting its lowest of $4,626/mt at the end of March.