The COVID-19 trashed the recycling dream. The metal market has been dramatically affected by the coronavirus crisis, and especially copper scrap demand. The copper industry and international supply chains have been hit hard by the pandemic and the lockdown. The copper scrap price grind lower as Covid-19 hits industrial demand. Now it's more like a rollercoaster ride down. Copper to see modest demand growth in 2020! India re-emerged quickly and came out even stronger. Yes, what researchers said is true; 2020 was supposed to be copper's year to shine.
Copper Scrap Demand in a Post Pandemic World
The coronavirus pandemic is set to pave the way for "the age of copper." Since the governments double down on investments, it has driven up red metal or copper scrap demand. Also, with traders and miners, it is expected consumption to rebound by 4% in 2021. There is also a growing need for renewable energy with India setting a national target of 50% by 2030. So, if you're looking for the right time to invest in a scrap that will retain value far into the future, copper is worth considering now. However, the Market players, recyclers, traders, and yard owners in the scrap industry have to make changes to their businesses in response to the coronavirus spread.
Government of India Plans on Copper Imports
Indian government shows a willingness to spend on infrastructure in late 2020 and into 2021, forming part of what Pareek expects to be "suppressed demand" for the red metal in that nation.
India plans to increase scrutiny on copper, aluminium imports with an eye on China, and other Europe countries. Government sources said, the prime objective of stricter tracking would be to limit copper and aluminium imports onto restricted items that would require importers to get a government-issued license for every shipment. The statement declined to be identified due to the sensitive nature of the discussions.
This declaration has tightened the surveillance and anti-dumping probe against imports of copper tubes. This has kindled the hopes of a demand revival for domestic manufacturers of copper tubes. And so, this copper scrap demand will be met by scrap import, and there will be a large number of scrap imports in coming days. At the same time, there is also a possibility; the government may cut duty on raw materials. We will update you the price correction in the coming days, in case if the government duty on raw materials.
Demand On Copper: 2020 World Market Review
The COVID-19 in 2020 has plunged the world into a "crisis like no other", but global demand for copper remained relatively strong and is poised for a surge in late 2020 and into 2021. Did you know copper consumption increased 14.9% year over year during the January to June period, up to 12 million tons? When it comes to copper scrap price, currently, it has rebounded by almost 40% since April and trading $6702/MT. According to the Institute of Scrap Recycling Industries, the copper prices, and demand dropped in early 2020, and market players, recyclers, traders, and yard owners had impacted on the scrap sector. But, within a few weeks, the demand and prices showed signs of early recovery and began to rebound. And as for as India, copper scrap demand is growing'.
This news state that, as India has a huge quantity of copper (around 200 000 tons of copper) to complete the electrification of India's 70 000 km of railways and other renewable energy projects, India will be fertile terrain for copper and refined copper.
The Bottom Line
The global copper market is showing a positive performance over the course of 2020. Also, the copper scrap demand is forecast to report strong development driven by consumption in major evolving markets. So it's time to spend on copper! To, stay up to date on copper and other metal scrap news and trends, check out our page!
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