SHANGHAI, Aug. 23 (SMM) –Recently, LME copper prices experienced significant declines, but domestic copper prices decreased relatively slower. Besides, cargo-holders of scrap copper were not active in hedge trading, keeping market transactions muted. Since most cargo-holders chose to hold goods and were reluctant to sell, scrap copper prices declined much slower.
After this round of copper price declines, scrap copper imports slightly improved, and imports for scrap red copper actually began to make profits from earlier losses. Last week, discounts for # 1 scrap copper in overseas markets were at cents 24/pound, and cents 35/pound for # 2 scrap copper. Profit margins of scrap copper imports and lower copper prices increased importer and buyer’s purchasing interest, but the increases were not obvious given relatively small supply due to summer holidays.