Copper Prices Consolidate at Highs, Low Inventory and Spot Premiums Support Firm Copper Scrap Coefficients [SMM Weekly Review of Secondary Copper Raw Materials Outside China]

Published: Aug 28, 2026 14:29

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SMM News on August 28:

This week, LME copper prices generally continued to consolidate at highs. On Monday, LME copper opened at $14,186/mt, and subsequently fluctuated mainly around $14,300/mt. Although copper prices edged higher than previously, the LME payable indicator for ex-China copper scrap remained broadly stable, with no notable pullback.

The LME payable indicator for ex-China copper scrap maintained strong resilience amid rising copper prices, mainly supported by several factors. On the one hand, copper scrap inventory in major consuming regions such as China, Japan, South Korea, and India remained low, with limited available cargo in the market, and the tight supply pattern continued; on the other hand, spot premiums for copper cathode stayed high recently, providing solid demand support for copper scrap—especially bare bright copper, which has strong substitutability for copper cathode. Some traders also reflected spot premiums for copper cathode in copper scrap offers in the form of higher payable indicators, thereby supporting the ex-China copper scrap LME payable indicator to remain firm even as copper prices rose.

In terms of transactions, downstream enterprises were still mainly making just-in-time procurement. As copper prices stayed high, downstream players showed limited willingness to restock, with a cautious procurement pace, and the overall market trading sentiment was relatively sluggish.

Looking ahead to next week, LME copper prices are expected to continue to consolidate at highs. The tight supply of ex-China copper scrap and low inventory across major regions are expected to persist, providing some support to the payable indicator. However, with demand continuously suppressed by high copper prices and weak market transactions, some traders may moderately cut offers and sell to meet cash recovery needs, driving a pull back slightly in the LME payable indicator for certain categories. Overall, the ex-China copper scrap LME payable indicator is expected to fluctuate at highs next week, with relatively limited downside room.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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