SMM Weekly Review on Scrap Copper Imports (July 25th-July 29th)

SHANGHAI, Aug. 2 (SMM) – Last week, the SHFE/LME copper price ratio remained unfavorable and although domestic scrap copper prices showed more resistance to fall, it failed to reduce losses in scrap copper imports. Discounts for high-quality scrap copper in overseas markets were flat with the previous week, with discounts for # 1 scrap copper reported between cents 30-32/lbs and # 2 scrap copper between cents 43-45/lbs. Although the number of overseas suppliers making initiative offers increased, domestic buyer’s wait-and-see mood was still heavy, with only copper smelters and low-oxygen copper rod enterprises making purchases on an as-needed basis. As domestic traders have generally slowed down buying, SMM believes that scrap copper supply will remain tight in the future.