The weekly indexes for most of the brass scrap grades rose in Delhi and Jamnagar in sync with the rise in the three-month LME copper contract. Market participants in Delhi and Jamnagar reported a revival in domestic demand as state governments partially relaxed lockdown in several cities. The lockdown in Delhi will continue till June 7. Few manufacturing units exporting brass billets and other parts are operational in Jamnagar. Domestic units are hopeful that demand from downstream industries will resume as lockdowns are lifted across India.
The three-month LME copper contract rose by $265.5/mt to $10,226.5/mt on June 1. On May 25, LME three-month contract dropped by $535.5/mt to $9,961/mt from the preceding week.
Demand remained subdued in Delhi and the adjoining due to lockdown measures. Participants in Jamnagar expect scarcity of scrap in the coming weeks as importers are struggling to procure scrap material from European and Gulf countries.
The weekly Davis Index for imported Honey brass, Wednesday, rose by Rs21,000/mt ($287.35/mt) to settle at Rs440,000/mt from Rs423,000/mt del Delhi consumer while in Jamnagar, the index settled at Rs453,333/mt from Rs445,625/mt up by Rs7,708/mt ($105.45/mt). Participants reported weak demand from domestic industries other than the medical sector.
Some downstream manufacturers reported continued demand for brass nozzles used in oxygen cylinders, nuts, sockets, and control valves used in ventilators. Participants heard fresh bids from China at $6,050/mt, up from $5,900/mt cfr China port a week ago.
The weekly Davis Index for Honey domestic origin (Purja) settled at Rs423,000/mt from Rs407,000/mt del Delhi consumer, up by Rs16,000($218.87/mt). The weekly Index for Honey domestic origin (Vilayati) del Jamnagar consumer settled at Rs430,000/mt from Rs421,115/mt up by Rs8,875/mt ($121.39/mt).
($1= Rs73.09)