Copper Scrap Rate in India: Grade-Wise Pricing, LME Linkage and How to Negotiate Better

Updated: August 26, 2026 · 17 min read

Copper scrap traded at a three-year price peak in early 2024 when London Metal Exchange (LME) cash copper briefly touched $10,700 per tonne, pulling domestic millberry quotes above ₹800/kg across Mumbai, Rajkot and Chennai yards. By Q1 2025, LME had corrected to the $9,000–$9,400 range, and Indian copper scrap rate benchmarks settled between ₹720 and ₹760/kg for clean Grade 1 material — yet most factory owners and procurement managers continue to accept the first quote they receive, unaware that the gap between a poorly negotiated deal and a well-prepared one routinely exceeds ₹30/kg. At one tonne, that is ₹30,000 left on the table. At ten tonnes a month, it is ₹36 lakh a year.

How LME Copper Prices Set the Floor for Every Indian Yard Quote

Every scrap dealer in India — from a 500-square-foot yard in Dharavi to a 10-acre processing facility in Vatva, Ahmedabad — prices copper relative to the LME copper cash settlement. The LME price is published in US dollars per metric tonne. Dealers convert this to rupees using the prevailing USD/INR rate (typically the RBI reference rate from the previous business day), then apply a percentage discount that reflects processing cost, profit margin, freight, and quality risk. This discount is the single most important variable in any copper scrap negotiation.

For clean millberry (Grade 1, also called “Millberry” or “Birch/Cliff No. 1” in international trade parlance), the typical domestic discount to LME in Indian markets runs between 10% and 15%. In Q1 2025, with LME averaging approximately $9,200/tonne and USD/INR near ₹84, the theoretical parity price was approximately ₹773/kg. Mumbai yards were quoting ₹720–₹760/kg — a discount of roughly 1.7%–7% in rupee terms, but this figure already bakes in the import duty differential and freight cost to consuming mills. For lower grades, the discount widens sharply: Birch/Cliff No. 2 typically trades at an additional ₹30–₹50/kg below Grade 1.

Sellers who do not track LME daily are at a structural disadvantage. The LME price changes every business day. A dealer quoting you a price on Monday morning may be using Friday’s LME — or last week’s, if the market moved against them. Always ask for the LME date and USD/INR rate the dealer has used as the basis. Any refusal to disclose this is itself informative.

Grade-Wise Copper Scrap Rates: Millberry to Utensil Copper in 2025

India does not have a single published copper scrap grade standard equivalent to the ISRI (Institute of Scrap Recycling Industries) Scrap Specifications Circular used in North America. In practice, the Indian non-ferrous scrap trade uses a mix of ISRI terminology, legacy Indian trade names, and buyer-specific internal classifications. Understanding which name refers to which grade — and what discount applies — is the first step to negotiating intelligently.

Indicative Copper Scrap Rates by Grade — Q1 2025, Mumbai/Pune Reference

Grade / Trade Name	Description	Typical Purity	Rate Range (₹/kg)	Discount to LME (%)
Millberry / Grade 1 (Birch/Cliff No. 1)	Clean bare bright copper wire, uncoated, unalloyed	99%+	₹720–₹760	10–14%
Birch/Cliff No. 2 (Heavy Copper)	Uncoated heavy copper bus bars, commutator segments, clippings	96–98%	₹680–₹720	14–18%
Candy / Insulated Wire (No. 1 Insulated)	PVC/rubber-insulated copper wire, 16 gauge and heavier	70–75% recovery	₹480–₹540	28–35%
Druid / Mixed Insulated Wire (No. 2)	Mixed gauge insulated wire, thinner or contaminated	55–65% recovery	₹380–₹440	40–48%
Utensil / Household Copper	Copper vessels, pots, mixed alloy kitchen items	85–92%	₹560–₹620	18–24%
Clad / Plated / Mixed Alloy	Nickel-plated, tinned, or alloyed copper components	Varies widely	₹280–₹400	48–60%

These figures are indicative for the Mumbai–Pune corridor in Q1 2025 and will vary by 3–8% across other regions. Rajkot and Jamnagar — home to India’s largest secondary copper processing cluster — often pay a slight premium for millberry and heavy copper grades due to proximity to brass rod manufacturers. Chennai yards typically price 2–4% below Mumbai for the same grades owing to lower competing demand from consuming mills.

The ₹15/kg Trap: Moisture, Contamination and Assay Deductions Explained

Price deductions are where most sellers lose money — not because dealers are dishonest, but because sellers arrive without documentation and accept the buyer’s assay as gospel. The three most common deduction triggers for copper scrap in Indian yards are moisture content, contamination by non-copper material, and alloy downgrading (discovering that what was sold as “pure copper” contains significant zinc or tin).

Moisture deductions kick in at anything above 2% moisture by weight. Copper scrap stored outdoors, transported in open trucks during monsoon, or sourced from underground cabling frequently arrives with 4–8% moisture. At a quoted rate of ₹740/kg, a 5% moisture deduction on a one-tonne lot reduces your realisation by ₹37,000 before any other adjustment. Industry practice in Mumbai and Ahmedabad yards is to charge ₹8–₹15/kg as a flat moisture penalty rather than a precise weight adjustment — which often disadvantages the seller when actual moisture is at the lower end.

Contamination deductions — for plastic insulation remnants, solder, grease, or attached steel — are calculated differently by each buyer. A contamination level above 5% is typically treated as a grade downgrade, shifting the entire lot from, say, Birch/Cliff No. 1 to Birch/Cliff No. 2 pricing and costing ₹40–₹60/kg on the quoted rate. The practical solution is to commission an independent chemical assay from a Bureau of Indian Standards (BIS)-accredited laboratory before the sale, which costs ₹1,500–₹3,500 per sample but can recover multiples of that amount at the negotiating table.

Regulatory Framework: Three Laws Every Copper Scrap Seller Must Know

Copper scrap sits at the intersection of environmental law, customs law, and tax law. Sellers who treat it as a pure commodity transaction — hand over the material, collect cash — are exposed to penalties that can exceed the value of the transaction itself.

1. The Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016

Notified by the Ministry of Environment, Forest and Climate Change (MoEFCC) and enforced by the Central Pollution Control Board (CPCB), these Rules are the primary environmental statute governing copper scrap that may contain hazardous residues — tinned wire, transformer oil-contaminated bus bars, or mixed cable containing lead-sheathed conductors. Schedule VI of the Rules lists copper scrap categories that require prior consent from MoEFCC before import. Rule 12 mandates that any facility importing restricted waste categories obtain both DGFT authorisation and MoEFCC prior informed consent. Violations attract penalties of up to ₹1 crore per consignment under the Environment (Protection) Act, 1986, and the CPCB has the power to direct seizure of the imported material.

Domestic generators of copper scrap — factories, power distribution companies, telecom operators — must also ensure that their scrap dealers hold valid authorisation under these Rules if the copper originates from a process that generates hazardous waste (e.g., electroplating baths, PCB manufacturing). Selling to an unauthorised dealer exposes the generator to joint liability.

2. HSN Code 7404 and Section 194Q of the Income Tax Act, 1961

Under the Goods and Services Tax framework, copper scrap falls under HSN code 7404 (“Copper waste and scrap”). The GST rate is 18% where the seller is GST-registered. Under the reverse charge mechanism applicable to scrap — and as clarified in CBIC Circular No. 196/08/2023-GST — registered buyers purchasing from unregistered suppliers must self-assess and remit GST. Separately, Section 194Q of the Income Tax Act, 1961, requires buyers whose turnover exceeds ₹10 crore to deduct TDS at 0.1% on copper scrap purchases exceeding ₹50 lakh in a financial year from any single seller. Sellers who do not furnish their PAN face a flat 5% TDS deduction instead — a punishing rate that turns a routine transaction into a cash flow problem. Always furnish PAN and insist on a Form 16A TDS certificate for every major transaction.

3. The Foreign Trade Policy 2023 and DGFT Import Conditions for Copper Scrap

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce, regulates the import of copper scrap through the Foreign Trade Policy 2023 (effective 1 April 2023). Under this policy, copper scrap (ITC-HS code 7404 0000) is categorised as “Free” for import, but this freedom is conditional: importers must comply with the Quality Control Order issued by the Ministry of Commerce and the environmental conditions attached by MoEFCC under the Hazardous Wastes Rules. Importers who bring in copper scrap without meeting the purity thresholds specified in the CPCB’s 2019 amendment circular (copper content minimum 94% for unrestricted import) risk both customs seizure and CPCB enforcement action. Given that import volumes directly affect domestic scrap supply and therefore pricing, factory procurement teams sourcing imported copper scrap must audit their suppliers’ compliance status before executing purchase orders.

What the 2024 DGFT Import Policy Revision Means for Domestic Scrap Supply

In May 2024, DGFT revised the import conditions for several non-ferrous scrap categories, tightening the documentation requirements for copper scrap consignments from OECD and non-OECD countries alike. The revision — effective from 1 June 2024 — requires importers to submit a pre-shipment inspection certificate from a CPCB-empanelled agency confirming that the copper scrap meets the minimum copper purity threshold and does not contain radioactive material or polychlorinated biphenyls (PCBs). This additional compliance layer increased average clearance time at JNPT and Mundra ports from 5–7 days to 12–18 days in H2 2024, according to trade association reports.

The downstream effect on domestic copper scrap rate India-wide was measurable: as imported material slowed into the market during Q3 2024, millberry prices in Mumbai yards briefly spiked to ₹790/kg before supply normalised. For domestic scrap sellers — factories, wire manufacturers, electrical contractors — this creates a periodic window where the LME discount narrows to 8–10% rather than the usual 12–15%, improving realisation by ₹15–₹25/kg. Tracking port clearance data and LME forward curves simultaneously gives domestic sellers a timing advantage.

The Ministry of Steel has separately flagged in its National Steel Policy review documents that secondary copper consumption in India needs to rise to reduce primary copper import dependence, which currently stands at approximately 1.4 million tonnes annually. This policy direction is likely to result in further incentives for domestic copper scrap collection and processing — a trend that domestic sellers and non-ferrous metal recycling operations should position for proactively.

Six Negotiation Levers That Actually Move the Price

Most sellers walk into a copper scrap transaction with one card: volume. Volume matters, but it is rarely sufficient on its own to shift a well-entrenched dealer’s margin. The sellers who consistently outperform the market benchmark use a combination of the following levers:

1. Arrive with an Independent Assay

A BIS-accredited laboratory assay report — confirming copper purity, moisture level, and alloy composition — removes the dealer’s most powerful deduction tool. When a seller can show 99.2% copper and 0.8% moisture, the dealer cannot justify a Grade 2 price or a 5% moisture penalty. The cost of the assay (₹1,500–₹3,500) is recovered on lots as small as 50 kg at the rates involved.

2. Reference LME Transparently

State the LME date, the published cash settlement price (in USD/tonne), and the USD/INR reference rate you are using. Ask the dealer to show you their working. Most buyers who operate without transparency rely on sellers not doing this calculation. When both parties work from the same LME basis, the negotiation shifts to the percentage discount — a much narrower and more defensible range.

3. Segregate Your Grades Before Delivery

Mixed copper scrap is always priced at the lowest grade in the mix. A 100-kg lot containing 70 kg of millberry and 30 kg of insulated wire will frequently be quoted as an insulated wire lot. Segregate, weigh and label each grade separately. The additional 20 minutes of sorting at your factory can recover ₹150–₹200/kg on the millberry portion.

4. Time Your Sale Around LME Forward Curves

LME copper is a liquid futures market. When the forward curve is in backwardation (spot price above forward prices), selling immediately is rational. When the curve is in contango (forward prices above spot), holding 15–30 days — if your storage and working capital allow — can add ₹10–₹25/kg. Most Indian sellers do not track this; most buyers do.

5. Request a Formal Written Quote with Named Parameters

Verbal quotes are legally unenforceable and routinely revised downward at the point of weighment. Insist on a written quote that specifies the LME basis date, the percentage discount, the weighment method (gross versus net), and the moisture/contamination deduction policy. This is standard practice at MSTC Ltd’s government e-auction platform, where scrap from public sector undertakings is sold — and the same discipline should apply to private transactions.

6. Offer Volume Commitments in Exchange for a Better Rate

A one-time sale of 500 kg commands a far worse rate than a committed monthly supply of 2 tonnes. If your factory generates copper scrap regularly — motor rewinds, transformer changeouts, cable replacement — quantify your monthly volume and offer a 3-month or 6-month supply arrangement. Most dealers will improve the discount by 1–2 percentage points for committed supply, which at ₹740/kg base translates to ₹7–₹15/kg improvement.

Copper Scrap Compliance Checklist: Eight Actions for This Quarter

Whether you are a factory selling surplus copper wire, a procurement manager buying copper scrap for reprocessing, or an electrical contractor clearing a project site, the following actions protect you from the most common regulatory and commercial risks in the Indian copper scrap trade:

1. Verify your buyer’s CPCB/SPCB authorisation — under the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016, dealers handling certain copper scrap categories must hold authorisation. Request a copy before executing the transaction.
2. Ensure GST invoicing under HSN 7404 — every transaction above ₹10,000 should carry a GST-compliant tax invoice. Insist on this regardless of whether you are buyer or seller; it protects both parties in an income-tax scrutiny.
3. Collect Form 16A for TDS deducted under Section 194Q — if your annual scrap sales to a single buyer exceed ₹50 lakh, TDS is applicable. Confirm deduction and collect the TDS certificate each quarter to claim credit when filing your ITR.
4. Commission a BIS-accredited assay before each major sale — for lots above 500 kg, the cost of an assay is negligible relative to the deductions it prevents. Retain the assay report for your records.
5. Document the chain of custody for scrap from hazardous processes — copper scrap from electroplating, PCB manufacturing, or transformer oil environments must be accompanied by a waste manifest under the Hazardous Wastes Rules. Retain copies for a minimum of 5 years, as required under Rule 20 of the Hazardous and Other Wastes Rules, 2016.
6. Check if your copper scrap attracts the reverse charge mechanism under GST — if you are an unregistered seller, the registered buyer is obliged to self-assess and pay GST. Understand this before pricing your material; the GST incidence ultimately affects your net realisation.
7. Track LME daily during the week of your planned sale — a 30-minute daily check of the LME copper cash price against your planned sale date can identify optimal timing, particularly when import clearance delays at ports are tightening domestic supply.
8. Request a certificate of recycling from your buyer — if you are a listed company or an entity required to file BRSR disclosures under SEBI’s circular dated 12 July 2023, a certificate of recycling from your scrap processor is the documentary evidence your sustainability team needs for waste diversion metrics. Many buyers in the unorganised sector cannot provide this; choose a buyer who can.

Frequently Asked Questions

What is the current millberry copper price in India?

Millberry copper (Grade 1, bare bright wire) was trading at ₹720–₹760/kg in the Mumbai and Pune markets in Q1 2025, representing a 12–14% discount to the LME cash copper price. Rates in Rajkot and Jamnagar are typically 2–4% higher due to strong local demand from brass rod manufacturers. Prices change daily with LME movements and USD/INR shifts — always ask your dealer for the LME basis date before accepting any quote.

Which HSN code applies to copper scrap under GST?

Copper scrap and copper waste are classified under HSN code 7404 in the Indian GST tariff schedule. The applicable GST rate is 18% for registered sellers. Where a registered buyer purchases from an unregistered seller, the reverse charge mechanism applies and the buyer must self-assess and remit the applicable GST, as clarified in CBIC Circular No. 196/08/2023-GST. Always insist on a proper tax invoice — this is your protection in any income-tax or GST audit.

Are copper scrap imports to India regulated?

Yes. Copper scrap imports fall under ITC-HS code 7404 0000 and are governed by the Foreign Trade Policy 2023 (DGFT) as well as the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016 (MoEFCC). Since June 2024, all copper scrap importers must submit a pre-shipment inspection certificate from a CPCB-empanelled agency. Material with copper content below 94% or containing PCBs is restricted. Non-compliance can result in seizure and penalties up to ₹1 crore per consignment.

What documents do I need to sell copper scrap from my factory?

At minimum: a GST-compliant tax invoice (HSN 7404), proof of origin (purchase invoice or inward stock register showing how the copper was acquired), your GST registration certificate, and PAN for TDS purposes under Section 194Q of the Income Tax Act, 1961. If the copper scrap originates from a hazardous process (electroplating, PCB manufacture, transformer decommissioning), you additionally need a waste manifest under Rule 20 of the Hazardous and Other Wastes Rules, 2016. Selling without these documents exposes you to joint liability and GST penalties.

What is the difference between millberry copper and heavy copper scrap?

Millberry copper (Birch/Cliff No. 1) refers to clean, uncoated, unalloyed copper wire of 16 gauge and heavier with no attached fittings, solder, or insulation — typically 99%+ purity. Heavy copper (Birch/Cliff No. 2) includes bus bars, commutator segments, punching, and solid copper with minor attachments — typically 96–98% purity. The price differential between the two grades in Q1 2025 was ₹40–₹60/kg in Mumbai markets. Misclassifying your material as millberry when it qualifies only as heavy copper is the most common seller error and a common trigger for post-weighment deductions.

Work With The National Recycling Corporation

The National Recycling Corporation is a pan-India full-service scrap and recycling dealer headquartered in Mumbai, with active operations across Maharashtra, Gujarat, Delhi-NCR, Karnataka and Tamil Nadu. Our copper scrap buying programme is built on two principles that the unorganised trade routinely ignores: price transparency and documentary integrity.

Every copper scrap transaction we execute is priced on a disclosed LME basis — you see the LME date, the USD/INR rate, and the percentage discount we apply before you confirm the sale. Our assay reports are shared with sellers before final payment, not withheld until after weighment. We issue GST-compliant tax invoices under HSN 7404 as standard, and for clients who require it for BRSR reporting or vendor audits, we provide a certificate of recycling confirming material weight, grade, and disposal route.

Our non-ferrous metal recycling services cover the full copper scrap value chain — from factory pickup and grade segregation to processing and onward supply to authorised consuming mills. We work with electrical contractors clearing project sites, power distribution companies replacing transformers and conductors, automotive manufacturers generating copper-bearing stamping scrap, and telecom operators decommissioning copper last-mile infrastructure. To discuss pickup scheduling, monthly supply arrangements, or documentation requirements for your BRSR disclosure, contact us directly.

• Pan-India pickup across Maharashtra, Gujarat, Delhi-NCR, Karnataka and Tamil Nadu
• LME-indexed, transparent pricing — basis date and USD/INR rate disclosed upfront
• GST-compliant invoicing under HSN 7404 with TDS certificate (Form 16A) where applicable
• Independent assay report shared with seller before payment settlement
• Certificate of recycling for BRSR, ESG reporting and vendor compliance purposes
• Authorised disposal partners for copper scrap from hazardous-process environments
• Monthly volume arrangements with preferential rate commitments for regular generators

Related Articles

• Why Procurement Now Asks for Certificate of Recycling: The New Vendor Onboarding Filter
• Hazardous Waste Rules 2016: The Manifest System Audit Trail Most Indian Factories Are Failing
• Plastic EPR Registration on the CPCB Portal: Step-by-Step for Indian Brand Owners

Sources and References

• CPCB — Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016
• Ministry of Environment, Forest and Climate Change (MoEFCC) — Waste Management Notifications
• Ministry of Steel, Government of India — National Steel Policy and Secondary Metals Data
• Directorate General of Foreign Trade (DGFT) — Foreign Trade Policy 2023 and ITC-HS Code 7404
• GST Portal — HSN Code 7404, Reverse Charge Mechanism, CBIC Circular No. 196/08/2023-GST
• London Metal Exchange — LME Copper Cash Settlement and Forward Curve Data
• MSTC Ltd — Government of India e-Auction Platform for PSU Scrap
• Bureau of Indian Standards (BIS) — Accredited Laboratories for Metal Assay Testing