SMM Weekly Review on Scrap Copper Consumption Advantages (Jun. 25-29)

SHANGHAI, Jul. 4 (SMM) –Tight cash flows at month's end constrained activity on the scrap copper market as downstream producers reduced purchase volumes. Cargo-holders of refined copper, though, pushed sales to generate cash, causing the premium on spot copper to narrow steeply, even flipping into discounts during the week. Spot scrap copper supply nevertheless remained extremely tight as cargo-holders withheld goods amid falling prices. As such, scrap copper prices fell more slowly than refined copper, forcing the price differential between the two to contract to only RMB 500-700/mt. This prompted downstream users to turn towards refined copper in place of scrap copper to maintain operations.