INDIA September 16 2015 11:26 AM
MUMBAI (Scrap Register): India major brass and copper scrap commodities prices dropped on Tuesday; while copper futures prices at India's Multi Commodity Exchange settled up at Rs. 361.20 recovered from the day's low driven by stocks of refined metal flowing into China as well as a string of mine closures that promise to tighten the market over the next couple of years.
The major brass and copper scrap commodities dropped on Scrap Register Price Index as on Tuesday. India's major scrap commodities like brass accessories brass, copper mixed scrap, copper pat, copper wire scrap, copper super d.rod traded down on Tuesday.
The most active November copper contract on Multi Commodity Exchange settled up by 1.01% or Rs. 3.60 to Rs. 361.20 per kilogram on Tuesday from previous close of Rs. 357.60 per kilogram.
The MXC copper prices touched an intra-day high of Rs. 361.70 per kilogram and an intra-day low of Rs. 355.50 per kilogram during Tuesday. The open interest of the contract stood at 12079 lots.
However, LME copper prices tumbled to a one-week low on Tuesday as jitters about demand from China fuelled negative sentiment, which was also undermined by lower equity prices in Shanghai.
Copper plummeted to its lowest level since the financial crisis in August, falling below $5,000 a ton on concerns about slowing growth in China, the world’s biggest consumer of the metal.
But the price jumped by more than 5 per cent last week, after Glencore added to a series of recent mine closures by some of the world’s biggest copper producers, announcing it would cut 400,000 tons of production from two of its operations in Africa.
The recovery has also been helped by the re-emergence of an import window that makes it profitable to ship refined copper into China once again. This is leading to copper cathode being pulled out of storage in China’s bonded warehouse zones and drawn into the domestic market.