SHANGHAI, Oct. 24 (SMM) – The latest SMM survey of copper plate, sheet, strip, and foil producers revealed that the utilization ratio of scrap copper was 24.8% in September, up slightly from August's 23.8%. The price differential between scrap and refined copper improved significantly following SHFE copper price surges, with the price gap between #1 bare bright and refined copper increasing to RMB 2,403/mt, the highest thus far this year. In this context, copper plate, sheet, strip, and foil producers became more willing to use scrap copper.
But as the SHFE/LME copper price ratio remained unfavorable, losses on imported scrap copper existed, keeping traders reluctant to import scrap copper. Chinese scrap copper supply became tight, helping cargo-holders quote firm prices. Therefore, the price advantage of scrap copper became smaller as copper prices fluctuated at the highs. The price difference between #1 bare bright and refined copper fell to RMB 1,200-1,500/mt during October, meaning that these producers will turn unwilling to use scrap copper in the near future.