SMM Weekly Review on Scrap Copper Consumption Advantages (Jul 16-20)

SHANGHAI, Jul. 17 (SMM) – SMM sources confirm that shipments of scrap copper ordered earlier are arriving at ports, promising to partially alleviate scrap copper supply constraints for the foreseeable future. The price spread between scrap and refined copper may thus widen slightly soon. As the price gap between bare bright (including tax) and refined copper still held between RMB 500-700/mt last week, scrap copper enjoyed no appreciable price advantage against refined copper, leaving most low-oxygen copper rod producers to continue favoring high quality material. The quotations for #2 scrap copper remained relatively high (94.5%-95% of spot refined copper) largely due to supply constraints. As TC margins at scrap copper smelters thus remained in negative territory, they exhibited little interest in buying scrap copper.