SMM Weekly Review on Scrap Copper Imports (Mar. 4-8)

SHANGHAI, Mar. 12 (SMM) –Dragged down by an increasing US dollar, copper futures prices continued to fall over the past week. However, SHFE copper prices dropped slightly slower than LME copper, helping the SHFE/LME copper price ratio rise to 7.30-7.31 gradually. Besides, the RMB exchange rate also increased further, causing scrap copper importing cost to fall slightly. CIF quotations for bare bright copper were US 6¢/lb below Comex copper for May delivery, US 15-17¢/lb below #1 scrap copper, and US 25-27¢/lb below #2 scrap copper. Losses on high-quality imported scrap copper fell considerably to RMB 400-600/mt last week, attracting more traders to inquire prices actively. As such, China's scrap copper imports are expected to increase appreciably in the near future.