RCs of blister copper edged up in August before trending lower at month-end

RCs of domestic blister copper stood at 900-1,200 yuan/mt and averaged 1,050 yuan/mt in August 2023, a gain of 50 yuan/mt month on month. RCs of imported blister copper were quoted at $100-110/mt cif, and averaged $105/mt, down $5/mt. RCs of blister copper in south China stood at 900-1,100 yuan/mt and averaged 1,000 yuan/mt, up 100 yuan/mt. Those in north China stood at 1,000-1,200 yuan/mt, averaging 1,100 yuan/mt, flat from July.

From the end of July, RCs of blister copper in south China rebounded due to the easing of tight market supply, and the average price returned to above 1,000 yuan/mt. In August, the price spread between copper cathode and copper scrap shrank below the advantageous level for scrap users due to falling copper prices. That reduced the supply of blister copper produced with copper scrap. Imported blister copper also decreased against a series of issues including the adverse weather, transportation capacity and maintenance.

Quotes in the domestic spot copper market rose in August ahead of the concentrated maintenance in September. Market optimism prompted smelters to restock inventories aggressively, tightening market supply again. RCs of blister copper trended lower at the end of August. As copper prices rebounded at the end of the month, the price spread between copper cathode and copper scrap widened, alleviating copper scrap shortages.

Nonetheless, RCs of blister copper can hardly rise again in light of the completion of maintenance at domestic mainstream smelters, the commissioning of some new and expansion projects as well as the traditional peak season.