Secondary Copper Rod Demand Weak in Central China, But Active in Southwest

According to SMM, the demand for secondary copper rod in Jiangxi, Hunan, and Hubei provinces remains weak. Enterprises in southern Jiangxi report that finished products are mostly stockpiled in warehouses, while factories in the eastern region, despite having no finished product inventories, have to sell copper rods at low prices mainly to traders due to high copper scrap prices and sluggish end-use consumption. As a result, the order volume in the hands of enterprises is about 1,000 mt, all from traders. In addition, factories in the aforementioned regions started producing anode plates two weeks ago. Currently, most rod plants focus on purchasing low-priced copper scrap and even stockpile sufficient raw materials before resuming production.

In stark contrast, the south-west China region shows more active consumption than South and Central China, with local enterprises even planning to add furnaces to meet demand. However, due to tight supply of raw materials for secondary copper rod, daily procurement volumes can only sustain 2-3 days of production needs.