Imports of Copper Scrap are Unlikely to Increase in May amid Weak Terminal Demand

SHANGHAI, May 4 (SMM) - The imports of copper scrap in March was 177,600 mt, an increase of 2.2% month-on-month and 18.43% year-on-year. Despite the losses, the imports of copper scrap still increased slightly by 3,800 mt in March as enterprises held a bullish outlook amid the peak season. However, given the slow recovery of terminal consumption, especially in the real estate sector, the demand for secondary copper rod and brass rod is weak. Therefore, the demand for copper scrap weakens and the imports of copper scrap are unlikely to increase.

On the whole, the supply and demand of copper scrap will continue to be tight in May. Specifically, the favourable policies have gradually stimulated the demand from real estate sector to grow, and the consumption of secondary copper rod and brass rod may increase. But the weak macro front and poor demand in May may still weigh on the copper prices. Therefore, cargo holders of copper scrap will be unwilling to sell and the supply of copper scrap will remain tight in May.