SMM Weekly Survey on Scrap Copper Inventories (Aug. 1-5)

SHANGHAI, Aug. 8 (SMM) –Based on SMM survey, scrap copper inventories during last week little changed and remained low, with the turnover period at two days. Importer’s importing enthusiasm was still low due to the unfavorable SHFE/LME copper price ratio, and continued to dampen the whole market. Meanwhile, tight supply of high-quality scrap copper in overseas markets was another factor for the tightness in scrap copper resources. Besides, operating rates at dismantling plants dropped during summer time, also hampering production of scrap copper to some extent. SMM believes that the current situation will extend, but will finally improve as resources at domestic copper smelters are tightening. As copper prices are falling back rapidly, the price ratio will improve later. In this context, scrap copper inventories will experience a rebound, which, however, will be seen about a month later.