India: Copper scrap prices remain rangebound w-o-w; cautious buying, tight supply persist

• Domestic copper scrap prices soften slightly
  
  
• Tight scrap flows may support prices
  
  

Copper scrap prices in India witnessed a rangebound trend w-o-w on 22 April, tracking a largely stable movement in London Metal Exchange (LME) prices, which stood at around $13,231/t, marginally up by $1/t from last week's $13,230/t. The muted movement in global prices kept domestic sentiment cautious, while buying activity remained need-based amid limited liquidity in the physical market.

At the domestic level, copper scrap prices remained under mild pressure, as buyers maintained a wait-and-watch stance despite steady demand from secondary consuming sectors. According to BigMint's assessment, copper Armature scrap, ex-Delhi, was assessed at INR 1,132,000/t, remaining rangebound against the previous week's average level of INR 1,130,000/t.. Tight scrap availability and selective inventory management continued to restrict material flow. In the imported scrap segment, brass honey from Europe was assessed at 60% of 3M LME CFR Nhava Sheva, from 61% last week, while copper Motors scrap from the US edged down to $1,620/t, decreasing by $10/t or 0.6% from $1,630/t in the previous week.

Market scenario

Market participants noted that copper prices remained largely rangebound over the past week, registering a marginal w-o-w decline amid cautious trading activity and limited spot liquidity. Demand from cable, wire rod, and consumer durable sectors remained steady, supporting consumption in the secondary scrap segment. In the northern market, armature scrap was heard trading around INR 1,130-1,135/kg, although spot availability remained tight.

The key factor keeping the global copper market uncertain is the risk of sulphuric acid shortages. Sulphuric acid remains a critical input in copper extraction, and nearly 17% of global copper production depends on this process. Any disruption in availability could directly impact supply expectations, thereby influencing near-term price sentiment.

In the domestic scrap segment, buyers largely preferred need-based procurement due to inventory pressure from earlier imported arrivals and uneven downstream demand. While offtake from electrical and cable sectors remained healthy, construction-linked demand continued to remain subdued. At the same time, fragmented domestic scrap generation kept supply conditions tight across several regional markets.

In the imported scrap market, buying interest remained restrained due to price volatility and currency fluctuations, while overseas suppliers continued to maintain firm offers amid limited global availability. Freight uncertainty and geopolitical disruptions further widened the gap between bids and offers, restricting fresh bookings.

Market participants remain watchful, with near-term price direction likely to depend on sulphuric acid-related supply developments, exchange inventory movements, and physical demand recovery.

Other updates

Hindustan Copper Limited has outlined a 7,188 crore expansion roadmap under its Vision 2030 strategy, targeting an increase in mine production capacity to 12.2 mnt per annum by CY30 from the current level of around 4.2 mnt per annum. The investment plan is aimed at strengthening domestic copper supply amid rising demand from infrastructure, power, and manufacturing sectors.

As part of the roadmap, the company is focusing on mine expansion, operational efficiency, and technology upgrades to improve productivity and cost competitiveness. It is also pursuing diversification opportunities in critical minerals and renewable energy-linked segments.

The expansion is expected to enhance Hindustan Copper Limited's long-term production profile and support Indias broader strategy of reducing import dependence in the copper value chain.

Outlook

The copper market is expected to remain range-bound in the near term, with sentiment guided by cautious buying activity and mixed physical market fundamentals. Tight domestic scrap availability and selective procurement are likely to support prices, although inventory pressure from earlier imports may cap sharper gains. In the imported segment, firm overseas offers, currency volatility, and freight uncertainties may continue to restrict fresh bookings. Global copper prices will remain sensitive to sulphuric acid-related supply concerns and exchange inventory movements, keeping the domestic market biased sideways to mildly firm in the near term.