Metallum Expands Global Scrap Copper Trading Network

During the day, the SHFE 2604 copper contract extended its downward trend, with the trading range falling further to 95,500-96,000 yuan/mt. The center of copper prices continued to move lower, stimulating restocking demand from downstream enterprises. Suppliers accordingly held prices firm, with standard-quality copper such as JCC and Lufang quoted at parity, while other brands such as Tiefeng, OLYDA, and Zijin were successively traded at discounts of 40 yuan/mt to 20 yuan/mt. Overall transaction pace was smooth. According to SMM, order volumes at most downstream enterprises surged significantly from the previous period, and end-user cargo pick-up also improved. The pullback in copper prices increased their attractiveness to enterprises, and purchase willingness to buy the dip was strong.

Eriez reported that its Shred1 system can increase copper recovery rates to about 94% in scrap processing. The technology uses magnetic forces and ballistic separation to improve sorting efficiency. Such innovations are enhancing both recovery rates and material quality in recycling operations.

SMM Morning Meeting Summary: Overnight, LME copper opened at $12,714.5/mt and climbed to $12,715/mt at the start of the session. Copper prices then saw the center move straight downward, before fluctuating rangebound and eventually closing at $12,340/mt, down 3.44%. Trading volume reached 33,600 lots, and open interest stood at 288,300 lots, down 4,872 lots from the previous trading day, mainly due to long position liquidation. Overnight, the most-traded SHFE copper 2605 contract opened at and touched a high of 98,000 yuan/mt, after which the center of copper prices moved straight downward to a low of 95,920 yuan/mt, then fluctuated upward and finally closed at 96,340 yuan/mt, down 2.58%. Trading volume reached 103,000 lots, and open interest stood at 198,000 lots, up 9,911 lots from the previous trading day, mainly due to increased short positions.