SMM Weekly Review on Scrap Copper Imports (Dec. 3-7)

SHANGHAI, Dec. 11 (SMM) –Chinese leaders decided the directions for next year’s economic policy and encouraged markets, which helped LME copper prices advance. However, SHFE copper prices rose slower than LME copper, causing the SHFE/LME copper price ratio to drop below 7.20. But discounts on scrap copper held flat. CIF quotations for bare bright copper were US 5-7¢/lb below Comex copper for March delivery, US 16¢/lb below #1 scrap copper, and US 29¢/lb below #2 scrap copper. With SHFE copper registering smaller increases than LME copper, losses on imported scrap copper expanded rapidly, and those on high-quality imported goods increased to RMB 1,800-2,200/mt. This depressed Chinese traders’ enthusiasm in importing scrap copper.