The weekly indexes for most domestic brass scrap grades dipped in India following a drop of $286.5/mt in the three-month LME copper contract. The three-month contract settled at $8,877/mt on March 9 from $9,163.5/mt on March 2. Clueless, market participants preferred to lower the prices to avoid losses if the copper contract continues its slide.
Market participants reported subdued demand in Jamnagar and in the North. Imports have also slowed. Cleaner scrap material is unavailable because of lockdowns in the US and the UK due to rising COVID -19 cases.
Trades for domestic buyers and Chinese bidders thinned in Jamnagar.
A few Chinese bids for brass billets dropped to $5,400/mt from $5,500/mt cfr China port over the week. Jamnagar exports 2,000/mt of brass ingots to China per month. Exports of brass billets at these levels are not viable as the scrap prices in the International market continued their upward swing despite the drop in the three-month LME copper contract.
The weekly Davis Index for imported Honey brass settled at Rs398,000/mt from Rs410,000/mt del Delhi consumer, down by Rs12,000/mt ($164.49/mt) while in Jamnagar, the weekly Index settled at Rs405,875/mt del Jamnagar consumer, down by Rs15,125/mt ($207.33/mt).
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs383,000/mt del Delhi consumer, down by Rs14,000 ($191.94/mt).
The weekly Davis Index for Honey domestic origin (Vilayati) settled at Rs381,875/mt del Jamnagar consumer, down by Rs23,125/mt ($317.04/mt).