Price Spread Between Copper Cathode And Copper Scrap Expanded Further

As of Friday June 16, the weekly average price of bare bright copper (excluding tax) rose by 760 yuan/mt from a week earlier. Copper scrap traders sold at highs, growing supply of copper scrap last week. The consumption of copper rod produced with copper scrap continued to weaken after copper prices soared. Therefore, copper rod plants using copper scrap as raw materials adjusted procurement pace, weakening demand for copper scrap last week.

Notably, due to the widening price spread between copper cathode and copper scrap and tight spot copper cathode supply, some copper scrap flowed into smelters. The overall supply of copper scrap was adequate last week.

For copper scrap, cif quotes for #1 copper scrap were Comex December copper contract prices less $0.1-0.11/lb, and offers for birch/cliff were Comex December copper prices less $0.2-0.21/lb. The coefficient for US brass against LME copper was 67-67.5%, with the fixed prices of $5,750-5,800/mt. The coefficient for copper granules (Cu 98.5%) against LME copper was 95.5-96% on a cif basis, and the coefficient for bare bright copper against LME copper at 99-99.25%, on a cif basis.