Average Operating Rate at Scrap Copper Smelters Stands at 46.2% in August

SHANGHAI, Sept. 5 (SMM) – SMM's latest survey indicated that the average operating rate at scrap copper smelters was 46.2% in August, virtually unchanged from the previous month. Imports of scrap copper increased in July and August, helping to alleviate tight scrap copper supply in the China's domestic market. As copper prices have trended higher, discounts on #2 scrap copper have slipped. Improvements in the scrap copper supply have compelled large and medium-sized scrap copper smelters to step up purchase volumes as well as their operating rates. However, as smelting remains loss-making, most SME smelters continue to opt to scale back production. The result was that no major change could be seen in August's average operating rate.