According to SMM data, from June 17 to June 21, the weekly average price of 1# copper cathode was 78,921 yuan/mt, down 0.72% WoW; the weekly average price of bare bright copper in east China nonferrous metals city was 73,260 yuan/mt, down 0.16% WoW; the weekly average price of bundled crude cable was 73,460 yuan/mt, down 0.16% WoW.
According to SMM data, copper prices continued to decline last week, and the purchase volume of secondary copper by traders in Linyi Metal City continued to decrease. This was partly due to the decline in the operating rate of end-users, resulting in less recyclable scrap; on the other hand, the drop in copper prices made sellers more cautious about selling their limited secondary copper. According to SMM, the current purchase volume of secondary copper by traders in Linyi Metal City decreased by two-thirds compared to the peak purchase volume within the year. From the demand perspective, the tightening supply of secondary copper has made it more difficult for copper rod plants using copper scrap as raw material to procure materials, but to maintain normal production, they still need to purchase at higher prices when necessary. Overall, the throughput of secondary copper in Linyi Metal City continues to decline.
Looking ahead to this week, copper prices at the beginning of the week is lower than last week. Traders of secondary copper at Linyi Metal City indicated that the procurement volume of secondary copper remains low this week. Previously, some traders at Linyi Metal City collaborated with traders in Ningbo to purchase imported secondary copper to increase the sources. However, due to the current large price fluctuations and the continued inversion of the price difference between the domestic and overseas markets, Linyi Metal City suspended trading in imported copper, and the market supply is still mainly domestic secondary copper. In addition, downstream copper rod plants using copper scrap as raw material said that the current premium on secondary copper is too high, and procurement is mainly based on rigid demand. Therefore, it is expected that the throughput of secondary copper at Linyi Metal City will continue to remain low this week.
