Brass Billet Imports from Two Core Sources Both Up MoM in May

[SMM Copper Scrap Flash] In May, Thailand's copper scrap exports to China totaled 26,400 mt, accounting for 13.81%, up 24.31% YoY but down 24.69% MoM. Demand for copper scrap in Southeast Asia diverted supplies, and combined with a seasonal decline in scrap collection output, the pace of shipments by traders slowed, resulting in a second consecutive monthly MoM decline in exports to China.

[SMM Copper Scrap Flash] In May, Japan supplied 28,400 mt in physical content of copper scrap to China, accounting for 14.86%, up 43.08% YoY but down 16.99% MoM. Domestic scrap copper recycling in Japan entered the off-season, with output from dismantling enterprises declining. Procurement by domestic smelters for their own use diverted export supplies, sharply reducing the spot cargo volumes available for China. Shipments to China pulled back significantly MoM.

[SMM Brass Billet Flash] The core contradiction of "high costs, weak demand, and pessimistic expectations" in the brass billet market has not fundamentally reversed. On the one hand, international copper prices hover at highs, continuously raising production and import costs for brass billets, squeezing profits of domestic processing enterprises, and making import purchase willingness increasingly cautious. On the other hand, the recovery pace of traditional end-use consumption sectors such as real estate, home appliances, and hardware remains slow, downstream finished product orders are mediocre, overall spot trades are sluggish, and there is insufficient momentum for large-scale restocking.