The weekly indexes for brass scrap rose by around $166.28-305.02/mt depending on the grade and location, in sync with a jump in the three-month LME copper contract. Demand was weak as major parts of the country are under partial or complete lockdown. The Delhi market was largely silent, while in Jamnagar, market sentiment was bearish. Offers to India were scarce as importers scaled back purchases amid bleak demand outlook from major sectors like auto.
Domestic and imported scrap prices increased due to a rise in LME copper. The three-month LME copper contract rose by $504/mt to $9,894/mt on April 27 from $9,390/mt on April 20. Earlier, LME Copper had jumped by $395/mt to $9,398/mt on April 20 from $9,002.5/mt on April 14.
Demand in North India remained weak as Delhi and adjoining area saw a sharp spike in COVID-19 cases, causing concern among workers and industry participants. Most scrap yards and smelters are operating at 10-15pc capacity due to weak demand and shortage of laborers. Importers said suppliers in the UK have shifted their focus to China due to unattractive bids from Indian buyers.
The weekly Davis Index for imported Honey brass, Wednesday, rose Rs22,700/mt ($304.79/mt) to settle at Rs431,500/mt from del Delhi consumer while in Jamnagar, the index settled at Rs441,250/mt del consumer, up by Rs13,250/mt ($177.89/mt). Jamnagar is facing a scarcity of raw material amid delay in shipments from Europe, fewer imports this week, and high demand from some manufacturers catering to the medical sector.
Smelters expect prices to rise amid shortage of imported scrap in the market. Some downstream manufacturers reported an increase in demand for brass nozzles used in oxygen cylinders as well as nuts, sockets, and control valves used in ventilators — which is expected to support prices. Chinese bids are at $5,600/mt cfr China port trades did not materialize considering the sharp hike in the prices of imported scrap material.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs415,000/mt del Delhi consumer, up by Rs15,000. The weekly Index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs420,375/mt, up by Rs12,375/mt due to high offers.