SMM Weekly Review on Scrap Copper Imports (Sept. 12-16)

SHANGHAI, Sept. 20 (SMM) –As risk aversion sentiment in the market was growing last week on concerns European debt crisis would spread, LME copper prices and other commodities prices rapidly fell back. However, given the seasonal high demand period, SHFE copper prices declined slower than LME copper prices, which improved the SHFE/LME copper price ratio somehow and created profit margins for scrap copper importers. Last week, discounts for # 1 scrap copper were cents 24/pound, while discounts for # 2 scrap copper fell slightly to cents 34/pound, which helped Chinese importers increase purchases. However, tight scrap copper supply would remain unchanged in the short term.