Copper Prices Surged on the Delivery Date, Copper Scrap Trading Was Sluggish [SMM Secondary Copper Daily Review]

SMM August 17

       At 11:30 today, the futures closing price was 109,900 yuan/mt, up 1,650 yuan/mt from the previous trading day. The average spot premiums were 80 yuan/mt, up 210 yuan/mt MoM from the previous trading day. Today, copper scrap prices rose 600 yuan/mt MoM. The copper scrap selling sentiment index rose to 2.85, while the purchasing sentiment index fell to 1.72. The price difference between copper cathode and copper scrap was 5,533 yuan/mt, up 972 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 2,260 yuan/mt. According to the SMM survey, intraday delivery of futures contracts and a sharp rise in copper prices threw copper scrap market quotations into disarray. Scrap utilization enterprises were unwilling to follow the rally and maintained a low-price procurement strategy, while suppliers of copper scrap were bullish on further rises in copper prices and showed weak willingness to sell. Overall intraday transactions were relatively weak.