India: Copper cathode prices inch higher w-o-w; cautious buying limits market activity

• Buyers stay away due to lack of clarity on US import tariffs, global prices
  
  
• Traders hold back material, expecting stronger recovery in prices
  
  

The key factor influencing market sentiment continues to be uncertainty surrounding the proposed US copper import tariffs

Copper cathode prices in western India rose w-o-w on 02 July 2026 following a rebound in domestic copper exchange prices, leading to higher domestic offers. However, buying activity remained limited as buyers remained cautious due to global uncertainty.

As per BigMint's assessment, ex-Mumbai copper cathode prices rose to around INR 1,274,000/t on 2 July from nearly INR 1,240,000/t last week. Similarly, Ahmedabad prices rose to around INR 1,277,000/t from nearly INR 1,243,000/t.

The increase came despite limited support from global benchmark copper prices. LME copper prices remained largely stable w-o-w at around $13,240/t, compared with $13,250/t in the previous week. However, MCX copper prices rose to around INR 1,270/kg on 2 July from approximately INR 1,230/kg a week earlier.

India copper cathode market sentiment

Buying activity in India's copper cathode market remained subdued during the week as consumers continued to adopt a cautious stance amid persistent volatility in global copper prices. Most purchases were strictly requirement-based, with wire rod manufacturers and cable producers limiting procurement to immediate production needs rather than building inventories.

Market participants noted that the recent correction in benchmark copper prices has significantly impacted trading sentiment. Several traders who had procured cathodes at record-high prices in previous weeks are currently reluctant to liquidate inventories at prevailing market levels, as doing so would result in substantial losses. Consequently, spot market activity remained slow, with sellers preferring to hold material in anticipation of a recovery in prices rather than offering aggressive discounts.

Domestic cathode availability continued to remain comfortable across major consuming regions, with sufficient supplies from leading producers including Hindalco, Vedanta, Birla Copper, and Kutch Copper. Despite adequate material availability, buyers largely refrained from placing bulk orders, expecting further clarity on global copper price movements before committing to fresh purchases.

The key factor influencing market sentiment continues to be uncertainty surrounding the proposed US copper import tariffs. Earlier this year, the US administration initiated an investigation under Section 232 of the Trade Expansion Act to assess the national security implications of copper imports. While the investigation has fuelled expectations of possible tariffs, no official announcement regarding the tariff structure or implementation timeline has been made so far. This ongoing uncertainty has kept global market participants cautious, with buyers in India preferring a wait-and-watch approach until greater policy clarity emerges.

International trade dynamics have also started reflecting this uncertainty. Market participants indicated that the CIF India premium for Japanese-origin copper cathodes has softened to around $300/t, compared with nearly $400/t a couple of months ago. The decline suggests easing regional premiums amid changing trade flows and improving availability of imported cathodes, although domestic consumers have yet to respond with stronger buying interest.

Going forward, market participants expect domestic copper cathode prices to remain closely aligned with movements in the LME and MCX. Unless benchmark prices stabilise and the US administration announces its final decision on copper import tariffs, buying activity is likely to remain cautious. Nevertheless, underlying demand from the power, cable, renewable energy, electric vehicle, and infrastructure sectors is expected to provide fundamental support to physical copper consumption over the medium term.