The weekly indexes for the domestic brass scrap grades dropped in Delhi but gained in Jamnagar despite the drop of $81/mt in the three-month LME copper contract from the prior week. The three-month contract dropped by $81/mt to settle at $8,898/mt from $8,979/mt on April 6, from $8,795/mt on March 30. Scarcity of scrap and low liquidity in the market also impacted the indexes. Indian Rupee depreciated against USD by 2.35pc to Rs75.15, from Rs73.42 on April 7, the same is weighing heavy on importers pockets.
Demand in North India remained weak. Jamnagar continued to witness unavailability of cleaner imported scrap material because of the lockdowns in US and the UK due to the pandemic.
Jamnagar saw slow trades with Chinese bidders. Downstream manufacturers reported an increase in demand for brass nozzles used in oxygen cylinders, nuts, socket, and control valve used in ventilators.
Chinese bids for brass billets was at $5,200/mt from $5,387- 5,477/mt cfr China port from the prior week, however trades at this level are not viable due to steep import prices, said traders.
The weekly Davis Index for imported Honey brass Wednesday settled Rs425,000/mt from Rs391,000/mt del Delhi consumer, down by Rs28,000/mt ($372.55/mt), and in Jamnagar, the Index settled at Rs424,500/mt del consumer, up by Rs833/mt ($11.08/mt). Jamnagar is facing scarcity of raw material as shipments on Europe route are delayed due to the recent Suez Canal blockage.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs425,000/mt del Delhi consumer, up by Rs28,000 ($372.55/mt). The weekly Index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs406,250/mt, down by Rs750/mt ($9.97/mt) due to weak demand.