The weekly indexes for the brass scrap rose by around $122-213/mt in Delhi and Jamnagar, in sync with the jump in three-month LME copper contract. Demand is weak due to lockdown in several regions across India. A strict lockdown in Delhi has halted trades, with only a few manufacturing units that export brass billets and other parts remaining operational.
Both domestic and imported scrap prices increased due to rise in LME copper. The three-month LME copper contract rose $575/mt to $10,533.5/mt on May 11 from $9,959.5/mt on May 4.
In the week before May 4, the LME copper contract rose $64.5/mt to $9,959.5/mt from April 27. Participants who were waiting for a correction in the three-month official copper contract have resumed booking import orders.
Demand in North India remained weak as Delhi and the adjoining areas saw a sharp spike in COVID-19 cases, causing concern among workers and industry participants. Importers said China has resumed buying after being away from the market since last few weeks.
The weekly Davis Index for imported Honey brass, Wednesday, rose Rs9,000/mt ($122.59/mt) to settle at Rs442,000/mt del Delhi consumer while in Jamnagar, the index settled at Rs461,667/mt, up by Rs14,834/mt ($202.03/mt). Jamnagar is facing a scarcity of raw material due to prolonged drop in imports on the back of rising copper prices on LME. Except from the medical sector, domestic demand is weak.
Some downstream manufacturers reported an increase in demand for brass nozzles used in oxygen cylinders, and nuts, sockets, and control valves used in ventilators, which is expected to support prices. Participants heard fresh bids from China at $5,880-6,050/mt, up from $5,600/mt cfr China port two weeks ago.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs430,000/mt del Delhi consumer, up by Rs10,000 ($136.20/mt). The weekly Index for Honey domestic origin (Vilayati) settled at Rs439,000/mt del Jamnagar consumer, up Rs15,667/mt ($213.41/mt) due to high offers.