According to SMM data, from August 19 to August 23, the weekly average price of 1# copper cathode was 73,790 yuan/mt, up 1.97% WoW; the weekly average price of bare bright copper in east China was 68,020 yuan/mt, up 2.47% WoW; and the weekly average price of bundled cable scrap was 68,220 yuan/mt, up 2.47% WoW.
SMM data shows that this week, the price of copper cathode futures rose compared to last week. Secondary copper traders in Linyi Metal City reported that the release of upstream secondary copper supply increased, but the growth was limited, and secondary copper remained relatively scarce. From the consumption side, secondary copper rod plants in Jiangxi, Hubei, and other regions have gradually resumed production, and procurement demand is also gradually increasing. Therefore, the increase in secondary copper supply has not alleviated the current tight situation. Overall, due to the rebound in copper prices, secondary copper supply increased; due to the resumption of some secondary copper rod plants, secondary copper demand also increased, leading to a WoW increase in secondary copper throughput in Linyi Metal City this week.
Looking ahead, this week, the US Bureau of Labor Statistics revised down the non-farm employment data, reducing the non-farm payrolls from April 2023 to March 2024 by 818,000, which has strengthened market expectations that the US Fed will soon start cutting interest rates. The market believes that copper prices may continue to rise, which will stimulate the release of secondary copper supply. Additionally, with the end of summer approaching, the recycling speed of secondary copper will also increase accordingly, and the supply of secondary copper is expected to further increase. Although some regions have already implemented Document No. 783, some secondary copper rod plants are gradually resuming production, and the demand for secondary copper is expected to continue to increase. In summary, the throughput of secondary copper in Linyi Metal City is expected to gradually rebound.
