Utilization Ratio of Scrap Copper Drops in August

SHANGHAI, Sept. 5 (SMM) – According to the latest SMM survey of major domestic copper wire rod producers, the utilization ratio of scrap copper fell in August from the previous month and kept moving at the lows.

In SMM's view, drop in the ratio is due largely to extremely tight scrap copper supply, creating difficulties for these copper wire rod producers to buy low-priced goods. Recent increasing copper prices have propelled scrap copper cargo-holders to become more willing to move goods, but the small price gap between scrap and refined copper cannot entice these producers to step up purchases of scrap copper. As such, the utilization ratio of scrap copper is expected to remain low for the near future.