SMM Weekly Review on Scrap Copper Consumption Advantages (Nov. 26-30)

SHANGHAI, Dec. 5 (SMM) –Copper futures prices rebounded strongly last week, lifted by a turnaround in the US and European fiscal policies and favorable Chinese economic data. Scrap copper prices were also boosted by tight market supply but gains were capped by sluggish downstream demand. The price spread between bare bright (including tax) and refined copper expanded to RMB 500-700/mt, leaving scrap copper no price advantage versus refined copper. As a consequence, downstream consumers were more inclined to buy refined copper. But scrap copper cargo-holders were also reluctant to cut selling prices, brining scrap copper market activity into a standstill.