SHANGHAI, Aug. 28 (SMM) –Shipments of imported scrap copper ordered May-June have begun arriving at Chinese ports. This has incentivized scrap copper cargo-holders to sell now to lock in prices, especially as copper prices were trending higher. Weak domestic consumption, however, remained an effective brake against rising scrap copper prices, which should continue rising at a slower pace than refined copper. As a result, the price differential between bare bright (including tax) and refined copper expanded further to RMB 1,000-1,300/mt, renewing scrap copper's price advantage over refined copper. Low-oxygen copper rod producers thus began stepping up scrap copper purchase volumes at the expense of refined copper. Quotations for #2 scrap copper edged down with quotations for US #2 scrap copper in Ningbo 94% of the price of spot refined copper. Scrap copper smelter interest in buying, however, remained muted, resulting in lackluster activity on the scrap copper market.
For queries, please contact Michael Jiang at michaeljiang@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn