Weekly domestic copper scrap prices fell byRs20,500/mt ($286.77/mt) on weak demand from switch-gear manufacturing companies in Gujarat, Maharashtra, Uttar Pradesh and southern India.
The domestic copper scrap prices of majority grades fell in line with the drop in the three-month official LME copper contract that fell by $416/mt to $6,139/mt Wednesday.
The Davis Index for copper armature wire fell by Rs20,500/mt to Rs398,250/mt del India consumer from the prior week.
Traders supplying copper scrap to switch-gear manufacturing companies said that the demand for scrap has dropped by 30pc from the prior week.In Delhi armature wire scrap was sold at a lower rate of Rs394,000/mt, with copper product manufacturers staying away from trades. Prices for armature wire are likely to decline more if the three-month official copper contract drops further on LME.
Among other scrap grades, the Davis Index for domestic Copper Berry Scrap rose by Rs3,750/mt to Rs430,000/mt on scarcity of copper Berry scrap in the market.
The index for copper sheet cutting rose by Rs7,000/mt to Rs420,000/mt on a tightened supply as copper stamping industries reduced production given the demand for switch-gears from the infrastructure sector is low.
The Davis Index for Heavy fell by Rs5,000/mt to Rs425,000/mt del India consumer. The index for copper turnings and utensils fell by Rs20,000/mt and Rs19,500/mt, respectively, and settled at Rs380,000/mt, for both the grades, on weak demand from downstream industries.
Traders postponed placing import orders despite the declined prices, amid weakened domestic demand and expectations of LME prices going southwards