Brass scrap prices for most grades dropped in Delhi and Jamnagar, in sync with the weakness in the three-month LME copper contract.
Market participants in Delhi and Jamnagar reported slow trading driven by sharp decline in the three-month LME copper prices. Manufacturers stepped away from the market on Wednesday to get a clear price direction of global copper prices.
Manufacturers reported severely low demand for brass billets in China. Domestic units are hopeful that demand from downstream industries will resume with the lockdown restrictions being eased across India.
The three-month LME copper contract fell by $314.5/mt to $9,587/mt on Tuesday from a week ago. In the earlier week, the three-month LME copper contract fell by $325/mt to $9,901.5/mt on June 8 compared to June 1.
Demand in North India showed improvement. Participants in Jamnagar are sitting on the sidelines and have not yet received offers from exporters in Europe and Gulf.
The weekly Davis Index for imported Honey brass, Wednesday, fell by Rs2,000/mt ($20.27/mt) to settle at Rs428,000/mt del Delhi consumer while for Jamnagar, the index settled at Rs442,500/mt del consumer, down by Rs2,500/mt ($34.09/mt). Participants reported demand revival in domestic markets as many states have begun the process of unlocking.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs414,000/mt from del Delhi consumer, down by Rs4,000($54.56/mt). The weekly Davis Index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs420,250/mt down by Rs4,750/mt($64.78/mt).