SMM Weekly Review on Scrap Copper Imports (Nov. 14-Nov. 18)

SHANGHAI, Nov. 17 (SMM) –Last week, as LME copper prices fell sharply to USD 7,500/mt from above USD 8,000/mt, the discounts offered on scrap copper narrowed again. CIF quotations for #1 scrap copper equaled Comex copper prices for December delivery minus USD 0.15/lb, and minus USD 0.26/lb for #2 scrap copper. In China’s domestic markets, declines in SHFE copper prices were slower than those for LME copper, helping the SHFE/LME copper price ratio hold between 7.36-7.37. Meanwhile, cargo-holders in China’s domestic scrap copper market were reluctant to move goods as prices fell, which provided a price floor as supplies contracted. Profits on imported scrap copper rose to between RMB 600-1,000/mt over the past week.