RCs of Blister Copper To Fall in June

SMM reported that RCs of domestic blister copper stood at 1,100-1,300 yuan/mt in May 2023, a drop of 50 yuan/mt from the previous month. RCs of imported blister copper were quoted at $100-120/mt cif, down $5/mt. RCs of blister copper in south China dipped 100 yuan/mt to 1,100-1,300 yuan/mt, and those in north China stood at 1,100-1,200 yuan/mt, flat from April.

In May, domestic blister copper RCs were stable in May before falling at the end of the month. At the beginning of May, the overall supply and demand of blister copper was stable. The price spread between copper cathode and copper scrap narrowed with falling copper prices, and copper scrap supply thus tightened. This tightened blister copper supply in south China which relies on copper scrap. Demand for copper anode increased after the completion of maintenance at some smelters and due to concentrated maintenance at more smelters in June. Meanwhile, the prices of sulphuric acid were cheap which were even 0 yuan/mt on a delivery to factory basis. The smelters with low sulphuric acid inventories reduced use of copper concentrate and turned to purchase blister copper and anode plates.

Moreover, there were high profits for smelters thanks to the high spot premiums, even with lower RCs of blister copper. At the end of May, mainstream traders in south China lowered RCs, followed by other market participants. The drop in RCs will be seen in June. The supply of cargoes in north China was also tight. Local RCs will also fall in June. RCs of imported blister copper also dropped in May as tight domestic supply turned users to purchase imported cargoes when the import window opened.