Enterprise Raw Material Inventory Ample, Copper Prices Pull Back, Turning Cautious [SMM Secondary Copper Daily Review]

SMM July 24

       At 11:30 today, the futures closing price was 104,890 yuan/mt, down 1,280 yuan/mt from the previous trading day. The average spot premium was 325 yuan/mt, down 5 yuan/mt from the previous trading day. Today, copper scrap prices fell by 500 yuan/mt from the previous trading day. The copper scrap sales sentiment index dropped to 2.6, and the purchasing sentiment index dropped to 2.2. The price difference between copper cathode and copper scrap was 3,818 yuan/mt, down 27 yuan/mt from the previous trading day. The price difference between copper cathode rod and secondary copper rod was 1,130 yuan/mt. According to the SMM survey, copper prices pulled back. Many copper scrap traders delivered short positions they had taken earlier. Meanwhile, secondary copper rod enterprises expected copper prices still had room to pull back. Additionally, as copper scrap traders delivered short positions, the raw material inventory of secondary copper rod enterprises, including in-transit stocks, was ample. Therefore, spot transactions were mediocre during the day.