Last week, copper prices plummeted, and suppliers of copper scrap refrained from selling. Therefore, the marginal supply of copper scrap decreased. Although the absolute price of copper scrap has fallen significantly, downstream copper scrap rod plants were cautious towards the procurement of copper scrap last week due to fears that copper prices would continue to decline and mainly purchased as required. Import losses of copper scrap, which have been stuck for nearly three months, narrowed after LME copper prices slumped. Any further narrowing of import losses will increase copper scrap supply. Prices of #1 bare bright copper without invoices averaged 62,840 yuan/mt as of Friday, down 1,200 yuan/mt from a week earlier. The average price spread between copper cathode and copper scrap shrank 30 yuan/mt to 1,637 yuan/mt.
For copper scrap, cif quotes for #1 copper scrap were Comex July copper less $0.1-0.12/lb, and offers for birch/cliff were Comex July copper less $0.22-0.24/lb. The coefficient for US brass against LME copper was 67-68.25%, with the fixed prices of $5,950-6,000/mt. The coefficient for copper granules (Cu 98.5%) against LME copper was 95.25%-96% on a cif basis, and the coefficient for bare bright copper against LME copper at 97.75%-98.5%, on a cif basis.
