Offers for copper scrap grades like armature wire, berry, heavy, sheet cutting, turnings, and utensils dropped in the Indian domestic market on Thursday by $127.46-533.96/mt in sync with the drop in the three-month LME copper contract for the second consecutive week.
Thin trades reported on Thursday as manufacturers reduced production capacities to 25-40pc owing to an extended lockdown in India, which in several states is likely to end on May 31. Production is unlikely to resume immediately after the lockdown as in many industries labourers have migrated to their hometowns. Unless transportation facilities are regularized, labourers will not be able to return to their place of work.
The three-month LME copper contract fell by $159.5/mt to $9,978.5/mt on Wednesday from May 19. LME Copper gained for the first two weeks in May, since then the contract has fallen.
The weekly Davis Index for copper Armature wire settled at Rs700,000/mt del India consumer, down by Rs18,750/mt ($258.38/mt).
The weekly Index for copper Berry dropped by Rs13,250/mt to Rs731,500/mt del India consumer.
Buyers were to pay 7.41pc more for domestic copper Berry compared to imported Berry del India, noted market participants. However, imported Berry is scarcely available in the domestic market as importers have shied away from the purchase of copper scrap due to a sharp surge in prices driven by a jump in LME copper contracts in early May. Also, liquidity issues have begun to hinder businesses due to COVID-related restrictions.
The weekly Davis Index for Heavy dropped by Rs9,250/mt and settled at Rs723,500/mt del India consumer. The weekly Davis Index for copper Sheet cutting settled Rs698,750/mt del India consumer, down by Rs12,500/mt. The weekly Davis Index for copper utensils settled at Rs657,500/mt del India consumer down by Rs38,750/mt and the weekly Davis Index for copper turnings settled at Rs657,500/mt del India consumer, down by Rs33,750/mt.