The weekly Davis Index for #1 copper wire (Berry) settled at $9,861/mt cfr India port, up by $520/mt in sync with the soaring copper prices on LME. Secondary manufacturers in India are resisting new purchases as lockdowns in many regions of the country could be extended. Exporters in the US reported rising demand in EU and China despite soaring scrap prices in sync with the three-month LME copper contract.
The three-month LME copper advanced by $555.5/mt to settle at $10,546/mt on May 12 from $9,990.5/mt on May 5.
The weekly Davis Index for #copper wire and tube (Berry Candy) settled at $9,491/mt, up by $500/mt cfr India port.
The weekly Index for #2Copper Birch cliff settled $8,964/mt, up by $422/mt cfr India port. Few participants reported spreads for Birch Cliff widening by 1.17pc from the prior week, while others reported no change.
Imports in Asia have slowed down as countries continue to grapple with the lockdowns amid a rising number of COVID-19 cases. Participants expect spreads to widen further if the advancement in three-month LME copper and the pandemic situation in Asia fails to recover.
Chinese participants are getting active to claim the cleaner copper scrap. Pakistan saw thin trades due to the five-day holiday on account of Eid.
The weekly Davis Index for yellow brass cfr India port settled at $5,825/mt, up by $173/mt. Traders from the US increased offers, driven by the Chinese interest in the cleaner scrap. Indian consumers preferred to stay away as several secondary manufacturers have idled production due to lack of labourers and weak domestic demand. Units having confirmed export orders have not stopped production.
Pakistan and China
Exporters from Pakistan and India heard Chinese bids settled at 93.5 to 95.5pc from 94.5pc of the three-month LME copper contract for copper ingots cfr China port. Indians reported weak demand for copper ingots while traders in Pakistan reported steady demand from China. Indian manufacturers saw a revival of demand for brass billets from China. The weekly Davis Index for brass billets settled at $5,965/mt cfr China port, up by $143/mt.