Under High Copper Prices, Few Transactions for Tax-Excluded Copper Scrap [SMM Secondary Copper Daily Review]

SMM August 3

       The futures closing price at 11:30 today was 105,830 yuan/mt, up 170 yuan/mt from the previous trading day. The average spot premiums were 280 yuan/mt, up 20 yuan/mt from the previous trading day. Secondary copper raw material prices rose 100 yuan/mt from the previous trading day today. The secondary copper raw material sales sentiment index increased to 2.52, and the procurement sentiment index rose to 2.01. The price difference between copper cathode and copper scrap was 3,455 yuan/mt, down 1,068 yuan/mt from the previous trading day. The price difference between copper cathode rod and secondary copper rod was 1,630 yuan/mt. According to SMM survey, copper prices surged in late trading, transactions in the secondary copper raw material market were very few throughout the day. Under high copper prices, demand for tax-unpaid copper scrap remained unable to trade on a large scale due to policy issues, while tax-paid copper scrap remained the market's "hot commodity." Scrap utilization enterprises indicated that restrictions on "reverse invoicing" are expected to be gradually lifted in the Jiangxi region, and some enterprises have already resumed production.