The weekly indexes for brass scrap dropped by $30.17-33.52/mt del Delhi. Traders in Delhi lowered prices following the decline in the three-month LME copper contracts.
The weekly Davis indexes for the brass scrap rose $13.41-44.70/mt del Jamnagar consumer amid thin trades on declining domestic demand and slow exports to China.
Market participants in Delhi reported a revival of demand. Traders in the Northern region are trying to encourage sales by giving discounts to avoid losses if scrap prices drop further. While in Jamnagar, sellers complained of slow demand from domestic downstream industries.
Chinese bids for brass billets continue to remain low and unattractive to Indian exporters. Brass scrap import prices are at around 78pc of the three-month LME copper for UK-origin scrap. Indian exporters reported subdued demand for brass billets in China. Domestic units are running at partial production capacity due to weak demand.
The three-month LME copper contracts dropped by $213.5/mt to $9,345/mt on July 13. Last week, copper contracts surged up by $306.5/mt to settle at $9,558.5/mt on July 6 from June 29.
North India reported progressive imports, but traders in Jamnagar shied away from imports on the back of the weak demand and the appreciation of the US dollar against the Indian rupee. Since June 14, the Indian rupee has depreciated by 1.81pc to Rs74.56 against the dollar, making imports expensive for Indian buyers.
The weekly Davis Index for imported Honey brass, Wednesday, settled at Rs427,000/mt del Delhi consumer, down Rs2,500/mt ($33.52/mt) while in Jamnagar, the index settled at Rs440,000/mt del Jamnagar consumer, up by Rs3,333/mt ($44.70/mt). Participants reported a slow revival of domestic industries in Northern India.
Participants heard fresh bids for brass billets at $5,513.54/mt cfr China port. Exporters said these prices are not feasible considering the rise in imported scrap prices, which are tracking the increase in the LME copper contracts.
The weekly Davis Index for Honey domestic origin (Purja) fell by Rs2,250($30.17/mt) to settle at Rs412,750/mt del Delhi consumer. The weekly Index for Honey domestic origin (Vilayati) increased Rs1,000/mt ($13.41/mt) to settle at Rs414,000/mt del Jamnagar consumer.