SHANGHAI, Jun. 18 (SMM) – SMM’s surveys of copper wire rod producers reveal that raw materials at the surveyed producers accounted for 16.98% of total production in May, up slightly from April.
Market pessimism over copper prices eased. Meanwhile, downstream consumption improved, stimulating some copper rod producers to increase to inventories.
According to SMM survey, copper rod producers using scrap copper as raw materials continued to suspend production or keep production volumes low in May. Copper rod producers continued to use only limited amount of scrap copper against scrap copper shortages and smaller price gap between scrap copper and refined copper.
SMM predicts that scrap copper consumption will pick up mildly along with widening price gap between scrap copper and refined copper in June.