The weekly indexes for most brass scrap grades dropped in Delhi and Jamnagar, in sync with a fall in three-month LME copper contract.
The weekly Davis Index for imported Honey brass, however, gained in Delhi as participants reported a shortage. Demand is still weak in many parts of India due to lockdowns. Trading in Delhi has halted while only a few manufacturing units exporting brass billets are operational in Jamnagar.
The three-month LME copper contract dropped by $37 to $10,496.5/mt on May 18 from $10,533.5/mt on May 11. Earlier, it had risen $575/mt from $9,959.5/mt on May 4. Participants are unsure about the future price direction of LME copper.
Demand in North India remained weak as Delhi and the adjoining areas saw a sharp spike in COVID-19 cases, causing concerns among workers and industry participants.
The weekly Davis Index for imported Honey brass, Wednesday, rose Rs1,000/mt ($13.67/mt) to settle at Rs443,000/mt del Delhi consumer while in Jamnagar, the index settled at Rs458,750/mt down by Rs2,917/mt ($29.87/mt). Demand from medical sector for brass parts is keeping trades active, otherwise demand from other domestic industries is weak.
Some downstream manufacturers reported an increase in demand for brass nozzles used in oxygen cylinders, and for nuts, sockets, and control valves used in ventilators, which is expected to support prices.
Exporters said China has resumed buying brass billets from India after staying away from the market for the last few weeks. Chinese bids were reported at $,6,000-6,100/mt, up from $5,880-6,050/mt cfr China port a week ago.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs425,000/mt del Delhi consumer, down by Rs5,000 ($68.34/mt). The weekly Index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs435,500/mt, down by Rs3,500/mt ($47.84/mt) due to high offers.
($1= Rs73.15)