India: Copper market edges down w-o-w as LME prices cool

• Domestic prices correct amid ample availability
  
  
• Global scrap sentiment remains weak but stable
  
  

Imported copper scrap prices in India edged down w-o-w on 11 February, although copper futures on the London Metal Exchange (LME) remain rangebound. Domestic copper scrap prices also moved lower.

According to BigMint's assessment, Middle East-origin Birch Cliff scrap was assessed at $12,240/t CFR Mundra, falling by 1% w-o-w, while armature scrap prices fell 3% w-o-w to INR 114,5000/t ex-Delhi. US motors mix prices also fell w-o-w to around $1,400/t CFR Mundra.

Market insights

Domestic copper scrap prices corrected this week after witnessing a sharp rally in line with record highs on the LME. Market participants indicated that ample availability of material in the physical market eased supply-side pressure, limiting further upside. Armature scrap was heard trading at around INR 1,140/kg ex-Punjab and INR 1,145/kg ex-Delhi, down from the INR 1,200/kg levels seen earlier this month, reflecting a healthy correction amid comfortable supply.

Meanwhile, the imported scrap market remained firm, with offers largely unchanged w-o-w, suggesting that overseas suppliers are maintaining prices despite the recent softening in domestic spot trades. Overall, sentiment remains balanced, with supply adequacy offsetting the earlier momentum-driven rally.

European copper scrap prices were unchanged this week, but the market mood turned weaker. Demand from factories is slow, and more scrap is available in the market, putting pressure on prices. LME copper prices were volatile and fell about 2% during the week, but this price drop did not increase buying interest because buyers are still cautious and facing tight margins.

In the scrap market, prices for #1 copper scrap remained stable at around 96.5-97.5% of LME prices. However, most deals had happened at the lower end of this range. Sellers said scrap supply was increasing, but buyers purchased small quantities for immediate needs. Millberry (bare bright) scrap prices also stayed steady at around 97-98% of LME, though traders feel prices could face downward pressure if supply continues to rise.

European Millberry payables were heard at around 97.5%, while UAE-origin Millberry was at a higher level of 98.75%. EU-origin irony scrap was reported at approximately 47.5%, whereas US-origin material talk was heard around 53% and UAE-origin at 50%.

Birch cliff scrap from the EU/UAE was indicated at about 92.25%. In the brass segment, EU-origin brass honey (7% attachment) was heard at 55.5%, while UAE-origin brass honey were slightly higher at around 58.75%.

Outlook

Copper demand continues to provide underlying support to prices. However, comfortable availability in the physical market and cautious procurement are likely to keep prices in the current range. Near-term movements may remain sentiment-driven, with volatility influenced more by LME trends and market positioning than by any immediate supply constraints.