The weekly indexes for most brass scrap grades dropped in Delhi and Jamnagar amid a weakness in the three-month LME copper contract. Market participants in Delhi and Jamnagar reported marginal revival in domestic demand as state governments allowed establishments to function for limited hours.
A few manufacturing units stated there were no fresh bids for brass billets from China. Domestic units are hopeful that demand from downstream industries will resume as local governments have started to lift lockdowns across India.
The three-month LME copper contract fell by $325/mt to $9,901.5/mt June 8 from $10,226.5/mt on June 1.
Demand in north India started reviving in Delhi. Participants in Jamnagar expect scarcity of scrap in the coming weeks as importers are waiting for the delivery of scrap material from Europe and the Gulf. Imports have been slow the last few weeks due to volatility in the scrap prices in the global market.
The weekly Davis Index for imported Honey brass, Wednesday, fell by Rs10,000/mt ($137.03/mt) to settle at Rs430,000/mt del Delhi consumer while in Jamnagar, the index settled at Rs445,000/mt from Rs453,333/mt down by Rs8,333/mt ($114.23/mt). Demand from domestic industries, except the medical sector, is still weak.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs418,000/mt del Delhi consumer, down by Rs5,000 ($68.52/mt). The weekly Index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs425,000/mt, down by Rs5,000/mt ($68.52/mt).