SHANGHAI, Sep. 15 (SMM) –
Imports for scrap copper in August were 0.4 million mt, up 5.68% MoM. Imports for scrap copper from January to August were 2.81 million mt, up 8.9% YoY. Importing volumes for scrap copper in August showed a slight growth of 0.02 million mt from July’s level, and reached a peak point in 2010.
SMM believes that the rise in scrap copper imports in August was mainly because scrap copper importers improved their buying interest in view of copper prices experiencing a steady upward momentum for twelve business days after middle July.
However, related data reveals that the monthly growing rate presents a slow rising momentum. The SHFE/LME copper price ratio maintains at a low level even during the summer break period in European market between July and September. The unfavorable ratio negatively affected scrap copper imports, tightening China scrap copper imports.
SMM expects that the low SHFE/LME copper price ratio will continue following the approach of the end of European countries’ summer break, the larger fiscal expenditure and other stimulus measures executed by the US government. Besides, time is needed to make consolidations in the LME copper market after experiencing a quick rise in July. Thus, LME copper price stopped rising at the level of USD 8,000/mt and met resistance of retaining the rising momentum from late July. In this context, buying interest at scrap copper importers was limited stimulated. Therefore, SMM expects that imports for scrap copper in September will decline to be in the 0.33-0.37 million mt range.
(Edited by SMM)