India: Brass honey scrap prices rise slightly w-o-w in Jamnagar, Gujarat, after New Year holidays

• Post-holiday demand stable but caution prevails
  
  
• Buyers interested in fulfilling just immediate needs
  
  

Domestic brass honey prices moved slightly higher w-o-w after the New Year despite subdued market activity and persistent demand-side pressures. Market participants reported sharply reduced processing rates, especially in north India, as ongoing pollution control measures in Delhi continued to disrupt operations across the value chain.

According to BigMint's assessment, brass honey, exw Jamnagar, Gujarat, increased by INR 11,000/t, rising from INR 660,000/t on 2 January to INR 671,000/t on 9 January, a 1.7% w-o-w gain which reflected a modest uptick amid otherwise weak market conditions.

Market participants indicated that brass honey scrap prices edged slightly higher during the first week of January, assessed at INR 670-675/kg ex-Jamnagar, as steady post-holiday demand was offset by cautious buying, payment delays, and weak imported scrap activity.

In the Jamnagar market, demand turned positive after the New Year led by brass parts, electrical fittings, and sanitary ware units resuming regular operations. Most rolling and casting units operated at normal utilisation levels, though buyers largely preferred hand-to-mouth purchases, reflecting reluctance to build inventory at prevailing prices.

Despite stable operations, payment delays persisted, with settlement cycles extending beyond normal timelines, constraining aggressive spot buying. Scrap availability in Jamnagar remained largely stable, supported by local collections and secondary flows, but the absence of strong downstream pull limited any upside. Overall sentiment stayed stable verging toward cautious, with market participants awaiting clearer direction from LME price movements and physical demand before taking positions.

On the imports front, fresh bookings remained limited after the New Year as LME copper continued to trade near record highs, making deals difficult for many buyers.

Imported offers were reported at around 55.5% of 3M LME for Europe-origin brass honey (6-7% attachment) and about 60% of 3M LME for Middle East-origin material (4% attachment). High LME levels, coupled with cautious domestic buying and stretched payment cycles, kept imported activity subdued while reinforcing the rangebound trend in brass honey prices.

Outlook

Brass honey prices are expected to remain largely rangebound with market fundamentals outweighing LME cues. Even though demand in Jamnagar has normalised post-holidays, cautious buying, delayed payments, and weak imported scrap flows are likely to limit any price upturn. As in recent weeks, temporary price gains may occur, but sustained strength will depend on easing of environmental restrictions in north India, improvement in cash flows, and a pickup in downstream brass ingot demand, particularly from export-linked markets.