Copper prices strengthen in first week of peak season; secondary copper rod enterprises see active transactions [SMM Secondary Copper Daily Review]

SMM September 4

    At 11:30 today, futures closing price was 109,600 yuan/mt, up 430 yuan/mt from the previous trading day. The average spot premium was 290 yuan/mt, up 25 yuan/mt MoM from the previous trading day. Today, secondary copper prices rose 300 yuan/mt MoM. The secondary copper sales sentiment index fell to 2.82, and the purchasing sentiment index fell to 1.80. The price difference between copper cathode and copper scrap was 3,547 yuan/mt, up 112 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,710 yuan/mt. According to the SMM survey, in the first week of the traditional peak season, many secondary copper rod enterprises said that after copper prices touched 110,000 and pulled back, many end-user wire and cable enterprises actively placed orders, mainly driven by expectations of continued copper price rises. Both end-users and traders were actively purchasing, but secondary copper rod enterprises were limited by limited tax-inclusive raw material inventory, so their order intake was limited, with production scheduled 4-6 days out.