SHANGHAI, Aug. 23 (SMM) –Based on the latest SMM survey, scrap copper inventories during last week were flat with the previous week levels, maintaining the turnover period for two days, and have been at low levels for a long time. The low scrap copper inventories were largely due to the fact that continuously poor SHFE/LME copper price ratio caused losses in scrap copper imports, and low discounts also depressed scrap copper importer’s importing interest.

However, although LME copper prices fell back recently amid fears over European debt crisis and global economic slowdown, domestic copper prices declined slower, improving the price ratio and importer’s importing enthusiasm. As a result, overall orders increased compared with earlier stages, but SMM believes scrap copper inventories will remain at low levels in the near term.