SMM Weekly Review on Scrap Copper Consumption Advantages (Oct. 22-26)-Shanghai Metals Market

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SMM Weekly Review on Scrap Copper Consumption Advantages (Oct. 22-26)

SMM Insight 09:45:44AM Oct 31, 2012 Source:SMM

SHANGHAI, Oct. 31 (SMM) –Copper futures prices experienced significant drops over the past week, but due to tight supply of scrap copper, especially high-quality goods, traders who held goods on hand were not eager to move goods out of consideration for costs. The price spread offered between scrap and refined copper was mixed between RMB 600-1,200/mt, related to goods costs and shares of hedge trading. But some traders still chose to offer bigger price gap to move goods for fears that future prices will fall further, while downstream producers conducted stable purchases under the price gap of about RMB 1,200/mt. Nevertheless, if copper prices dip further and lead the price differential between scrap and refined copper to shrink, downstream producers' buying interest will be depressed.  

 

SMM Weekly Review on Scrap Copper Consumption Advantages (Oct. 22-26)

SMM Insight 09:45:44AM Oct 31, 2012 Source:SMM

SHANGHAI, Oct. 31 (SMM) –Copper futures prices experienced significant drops over the past week, but due to tight supply of scrap copper, especially high-quality goods, traders who held goods on hand were not eager to move goods out of consideration for costs. The price spread offered between scrap and refined copper was mixed between RMB 600-1,200/mt, related to goods costs and shares of hedge trading. But some traders still chose to offer bigger price gap to move goods for fears that future prices will fall further, while downstream producers conducted stable purchases under the price gap of about RMB 1,200/mt. Nevertheless, if copper prices dip further and lead the price differential between scrap and refined copper to shrink, downstream producers' buying interest will be depressed.