The weekly Davis Index for imported Honey brass settled at Rs282,000/mt del Delhi consumer, down by Rs14,000($185.72/mt) on Wednesday from pre-pandemic trading rates, eight weeks ago. No trades were reported in the domestic scrap market even as brass billet and ingot manufacturers resumed production last week.
Traders in Jamnagar confirmed they were unloading shipments at Mundra port. Small enterprises struggled to pay demurrage charges due to lack of liquidity in the market because of the COVID-19 pandemic. The Indian government has further extended the lockdown in several regions till May 17, although businesses in non-COVID affected regions can restart with limited workforce.
Importers are also burdened with detention and demurrage charges slapped by shipping companies and container freight stations (CFS) despite the Ministry of Shipping’s directive to waive-off charges applicable due to lockdown. Traders said that that they are paying 1.5pc detention and demurrage charges to shipping companies and CFS per container against the valuation of the scrap. The weekly Davis Index for Honey domestic origin (Purja) settled flat at Rs272,000/mt del Delhi consumer, down by Rs15,000/mt from pre-pandemic trading rates.
The weekly Davis Index for imported Honey brass remained unchanged at Rs284,000/mt del Jamnagar consumer, down by Rs6,000/mt, on lower demand from alloy makers. The index for Honey domestic origin (Vilayati) settled at Rs272,500/mt del Jamnagar consumer, down by Rs2,500/mt, on lower demand. The index rates remained flat for seven weeks.
In the absence of domestic demand, brass billet manufacturers are relying on China exports. Trades were reported at $3,600/mt cfr China. Manufacturers have confirmed offshore orders for the next two months.
The three-month LME copper contract inched up by $121/mt to $5,263.5 on May 12 from the prior week.