This week in India, imported copper scrap prices remained stable to slightly increased, amid some gains in LME copper futures and strong overall sentiment globally. Millberry and Birch/Cliff were still being assessed at solid prices, with persistent tight availability and overseas demand continuing to drive markets. This week, the market assessed Birch Cliff scrap at $9,895/tonne, up $140/t on the week, while the US motors mix rose $20/t week-on-week to $1,190/t (CFR Mundra both). Buyers in India have remained cautious, unable to compete on pricing with the aggressive premiums paid by importers in China. Domestic availability was also impacted owing to monsoon-related disruption, which further compounded logistics availability and scrap collection. In light of this, buyers engaged only in what they considered essential purchases, being careful to keep traded volumes as low as possible for the most part.

The domestic copper scrap market reflected the increasing momentum in the imports segment, as one day's offers had continued to move higher. Buyers acting to fulfill urgent needs had accepted better prices, although the general market tone stayed reserved. Variations by region were also evident - southern India experienced relatively higher levels of demand, while the north and west lagged. These regional price spreads, together with seasonal industrial slowdowns, had caused a dislocation in the trade flow, dampening overall activity.

Outlook:

In the short term, copper scrap prices in India are anticipated to remain strong owing to relatively high LME prices and the limited circulation of inventories due to seasonal disruptions. However, trade activity could remain low due to Indian buyers' sensitivity to high global offers and transport disruptions. In the post-monsoon period, the market is likely to improve with increased operations in the industrial segment and more fluid transit. Globally, robust Chinese demand, fluctuations in interest rates in the US, and LME inventory changes will remain important in the price movement of copper. Concerns remain, but the sentiment in the Indian market is expected to gradually improve as supply chains normalize.