India: Copper scrap prices show mixed trends w-o-w; tight supply supports market

• LME copper rises by 8% w-o-w, supports sentiment
  
  
• Supply shortages, gas issues keep domestic prices firm
  
  

Copper scrap prices in India showed a mixed trend w-o-w on 15 April 2026, tracking a moderate recovery in London Metal Exchange (LME) prices, which increased to around $13,300/t, up by $1000/t (+8%) from last week's $12,300/t. The upward movement in global prices provided some support to domestic sentiment, although gains were partially offset by cautious buying activity and limited liquidity in the physical market.

Despite the rise in LME prices, the domestic market remained firm due to tight scrap availability, with logistical constraints and cautious inventory management limiting material flow. According to BigMint's assessment, copper Armature scrap, ex-Delhi, was assessed at INR 1,150,000/t, up by INR 42,000/t (+2.4%) w-o-w from INR 1,123,000/t. In the imported scrap segment, Brass Honey from Europe was assessed at 61% of 3M LME CFR Nhava Sheva, from 59% last week, while copper Motors scrap from the US edged up to $1,630/t, increasing by $80/t (+5.2%) from $1,550/t in the previous week.

Market insight

Market participants noted that despite a gradual resumption of shipments from the Middle East to India, a shortage of material still persists across key regions.

In the scrap segment, Cu motor mix offers from the United States were reported around $1,700 per tonne. However, actual deals in the Western region were concluded at lower levels of $1,630-1,650/t. Meanwhile, bids from Gujarat remained subdued at $1,530-1,540/t, creating a noticeable price mismatch between buyers and sellers. This disparity has made it increasingly difficult for market participants to secure material at desired levels, further tightening supply conditions.

Operational challenges have also added pressure to the market. Several plants in parts of Gujarat continue to operate at reduced capacity or remain temporarily shut due to ongoing LPG and gas shortages. Higher fuel costs, in some cases nearly doubling, have pushed up processing costs, thereby supporting higher prices for brass honey scrap.

In other segments, armature scrap was traded at around $1,155-1,160/t in the northern region. Additionally, wire manufacturers reported healthy demand for CCR (continuous cast rod) but are facing similar supply constraints. Price mismatches and limited availability have led to cautious procurement, with some buyers slowing their purchasing activity.

Other market updates

China's copper smelters are likely to push ahead with output cuts as Beijing's planned ban on sulphuric acid exports weakens a key revenue stream. Over the past year, strong sulphuric acid prices, driven by battery sector demand and supply disruptions linked to the Iran conflict, helped offset sharply declining treatment and refining charges (TC/RCs). However, with exports set to halt from May, domestic acid supply is expected to rise, putting downward pressure on prices.

At the same time, spot treatment charges have plunged to record lows of around -$77/t, reflecting an acute shortage of copper concentrate. Industry participants indicate that falling byproduct earnings, combined with negative processing fees, could force smelters to reduce output or advance maintenance schedules. While production rose 9% in early 2026, the evolving market dynamics may now shift the balance toward supply discipline.

Outlook

The copper market is expected to remain firm, supported by elevated prices on the London Metal Exchange and ongoing supply tightness. While Middle East inflows are improving, shortages and price mismatches will likely keep liquidity constrained. Continued gas-related disruptions in Gujarat and steady demand from wire and brass producers should support prices, with the market staying range-bound at higher levels and biased upward in the near term.