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Indian Copper Scrap Price Forecast (JULY-04-22)

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by - 7/1/2022 740 Views

Copper Scrap prices in India slipped to 15-month lows on increasing negative pressures in the supply and demand sectors.

Copper Scrap price forecasting benefits Copper Scrap traders and investors by better understanding supply-demand issues in base metals and how each factor will affect Copper Scrap prices.

Using Linear Regression and Granger's Causality models, our RIM researchers forecasted Copper Scrap prices in India for July 04, 2022, after understanding the correlation between Copper prices and Copper Scrap Prices.

Copper Scrap price forecasting will help Copper Scrap importers, exporters, recyclers, and other scrap-related industries determine the right time to sell or buy Copper Scraps for maximum profits.

Copper Scrap Price Forecast in INDIA for July 04, 2022

Copper Scrap Predicted Price
Hunny Yellow (Jamnagar) ₹ 482.93
Brass Hunny (Jamnagar) ₹ 448.09
Copper Utensil (Mumbai) ₹ 608.79
Copper Heavy (Mumbai) ₹ 667.36
Copper Wire (Delhi) ₹ 632.63

Graphical Representation of MCX Copper Base Metal Price (INDIA)

 

Indian Copper Scrap Price Forecast (JULY-04-22)

Copper Scrap Prices:

As the price gap between Copper Base Metals and Copper Scrap continues to narrow, investors/traders discovered no profit in selling Copper Scraps, resulting in low shipments.

Meanwhile, Copper Scrap demand has continued to fall due to declining Copper prices and low global economic growth, arising in poor consumption.

Copper Scrap prices are expected to fall further in the coming month unless Copper prices grow and the global economy retains.

Copper Scrap prices have fallen by around 20% since the March hike and are now at 17-month lows, the lowest since February 2021.

Copper Scrap Prices in India are now trading at,

Copper Utensil Scrap Prices (Mumbai): Rs.625/KG

Copper Wire Scrap Prices (Delhi): Rs.646/KG

Hunny Yellow Scrap Prices (Jamnagar): Rs.498/KG

Brass Hunny Scrap Prices (Jamnagar): Rs.482/KG

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Copper Prices:

Copper prices in India hit 15-month lows and are trading at Rs.682.10 per KG on July 01, 2022, 2.78% or Rs.19.50 down from the previous close price and the lowest since April 2021.

Copper prices fell to their lowest quarterly level since March 2020 on Friday as investors worried about a possible recession caused by interest rate hikes and slowing demand growth in China.

Copper prices are a great indicator for evaluating the health of a global economy as "Copper Base Metal" is widely used as a raw material across industries operating within an economy.

Copper prices are on a bullish track and almost have fallen more than 20 percent from the recent March 2022 hike – Rs.891 per KG.

What Is Pushing Copper Prices Further Down?

Copper prices are down due to the threat of a recession in developed economies, including the United States and Europe. The major central banks have begun to raise interest rates aggressively. This can result in lower GDP growth, consumer spending, and funding costs for businesses operating in these countries.

• Interest rates in India and other developing economies are also rising. If central banks worldwide continue to raise interest rates aggressively in the coming months, a global recession will almost certainly follow.

• Meanwhile, a stronger US dollar index is putting additional pressure on Copper prices, with the US dollar index edging closer to 105, near its 20-year high. As the USD strengthens, dollar-denominated metals become less appealing to buyers holding other currencies.

Supply-Demand Side Headwinds

On the Demand Side

The main reason for the significant drop in Copper prices in June was weak Chinese demand due to the re-imposition of Covid lockdowns. China's factory activity is improving after three months of decline due to strict lockdowns forcing factories to close and cut logistics and transportation facilities.

In the meantime, the Chinese authorities relaxed their strict restrictions in the final week of June, leaving investors waiting for an unexpected demand revival in China to drive up Copper prices.

Also, troubles in Europe and Japan's factory output, which saw its biggest monthly drop in two years due to China's COVID-19 curfews and other major factors, hit manufacturing activities.

On the Supply Side:

The Chilean Copper workers began the nationwide strike over the company's decision to close an allegedly polluting smelter.

About 50,000 copper workers, including Codelco's employees and contractors, joined the indefinite strike, the Federation of Copper Workers (FTC), an umbrella group of copper worker unions, said in a statement.

The ongoing protest in Chile's Copper mine is causing supply disruptions for Copper Base Metal and indicating a negative signal for Copper prices.

Will Downward Trend In Copper Prices Sustain For A Long-Term?

Copper's supply-demand chain issues remain challenging day by day. However, due to the bearish factors mentioned earlier, Copper prices may fall lower in the coming weeks.

Copper prices will tend to slide until the global economy stabilizes and China returns to the market to invest in Copper Base Metal.

However, long-term demand growth for Copper in the green energy transition, electric vehicles, energy storage sectors, wind power generation, and solar panels appears to be quite positive, with the possibility of Copper prices reaching new highs in the coming years.

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Category : General

Tags : Copper, Copper Prices, Copper Scrap, Copper Scrap Prices, Copper Scrap Price Forecast India, Copper Scrap Price Predictions INDIA


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About Jenisha Rajakumar

I'M a Research Analyst and Content Creator at RIM. Currently I'm researching on Copper Prices around the Globe and the impacts on Copper Scrap Prices with regard to COMEX, LME, SHFE and MCX. .... more info

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