Structural Demand Shifts in the Copper Market Highlight Recycled Copper’s Importance

【SMM Analysis: 2026 Chinese New Year Holiday Arrangements for Copper Cathode Rod Enterprises】With the Chinese New Year holiday approaching, production and holiday schedules for most copper cathode rod enterprises during the holiday period have been finalized. SMM, through market communication and a comparison with the YoY situation in 2025, provides a detailed analysis as follows:

SMM Morning Meeting Minutes: LME copper opened at $13,025/mt overnight, initially dipped to $12,975/mt, then fluctuated upward and touched a high of $13,228/mt near the close, finally settling at $13,185/mt, up 0.96%, with trading volume reaching 15,200 lots and open interest at 327,000 lots, an increase of 2,466 lots from the previous session, overall showing a pattern of bulls increasing positions. The most-traded SHFE copper contract 2603 opened at 101,740 yuan/mt overnight, touched a low of 101,280 yuan/mt at the beginning, then the center of copper prices gradually shifted upward and tested 102,500 yuan/mt, finally settling at 102,450 yuan/mt, up 0.93%, with trading volume reaching 41,800 lots and open interest at 165,000 lots, a decrease of 4,251 lots from the previous session, overall showing a pattern of bears reducing positions.