The weekly indexes for most brass scrap grades dropped by $49.36-70.68/mt in Delhi and Jamnagar in sync with the fall in the three-month LME copper contract. Market participants in Delhi and Jamnagar reported thin trades driven by the sharp fall in the three-month LME copper prices. Manufacturers reported weakness in domestic as well as export demand and slow imports.
In the week ending Jun 22, the three-month LME copper contract settled at $9,217/mt, down 3pc or $370/mt which pulled scrap prices down.
Manufacturers heard that China has entered the global market and Chinese buyers showed interest in cleaner honey scrap. Indian exporters reported low demand for brass billets in China. Domestic units are running at partial production capacity due to weak demand. The demand for brass nozzles in oxygen cylinders and brass parts in ventilators has dropped as COVID-19 cases have reduced in India.
The three-month LME copper contract fell by $517/mt to $9,070/mt on Jun 21 but recovered by $147/mt on the following day to settle at $9,217/mt on Jun 22. Some import deals have halted or are postponed as the three-month LME copper contract gained by $147/mt in a day.
The weekly Davis Index for imported Honey brass on Wednesday, settled unchanged at Rs428,000/mt del Delhi consumer while in Jamnagar, the index settled at Rs438,833/mt del consumer down by Rs3,667/mt ($49.36/mt). Participants reported a slow revival of domestic industries as many states are in the process of unlocking.
Participants did not hear fresh bids for brass billets from China.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs409,000/mt del Delhi consumer down by Rs5,000($67.31/mt). The weekly index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs415,000/mt down by Rs5,250/mt ($70.68/mt).
($1= Rs74.27)