SMM Weekly Review on Scrap Copper Imports (Jan. 7-11)

SHANGHAI, Jan. 15 (SMM) –LME copper prices rebounded sharply during the New Year holiday and touched as high as USD 8,256/mt. However, the increase in SHFE copper prices was limited following the holiday, which reflected slack Chinese spot markets. In this context, the SHFE/LME copper price ratio dropped to around 7.20. With LME copper prices marching higher but a falling number of Chinese buyers, discounts on scrap copper edged higher. CIF quotations for bare bright copper were US 6-8¢/lb below Comex copper for March delivery, US 17-19¢/lb below #1 scrap copper, and US 29-31¢/lb below #2 scrap copper. Losses on high-quality imported scrap copper held between RMB 1,700-2,000/mt, with traders still expressing low interest in importing.