India Sustains High Bids for Overseas Copper Scrap Amid Domestic Shortages

India's copper scrap market has seen significant growth in recent years due to rising domestic demand for raw materials. The country's continued investment in infrastructure, power grids, cables, and manufacturing has driven up copper consumption, leading to a shortage of domestic scrap collection.

As a result, India has become an increasingly active buyer in the global copper scrap market, with its import volumes showing clear growth. Indian buyers often offer higher prices or payabilities than those in China, Japan, and South Korea, particularly for materials requiring further dismantling, sorting, or smelting.

This pricing advantage is supported by several factors. First, tariff adjustments have reduced direct import costs for certain copper scrap products under tariff codes 74040012, 74040019, and 74040022. Since February 2025, India has lowered the basic customs duty to zero on these eligible materials.

Second, competition for feedstock remains intense due to the expansion of secondary copper rod, copper ingot, brass, and smelting capacity in India. When plants have sufficient orders but limited raw material inventories, they may be willing to bid aggressively to maintain operating rates.