SHANGHAI, Apr. 8 (SMM) – The rebound in copper prices enlarged scrap discounts yet did not improve scrap supplies in the Chinese market, Shanghai Metals Market has learned.
#1 bare bright copper discount to cathodes expanded to 600-1,000 yuan ($97-162) per tonne, from 400-800 yuan per tonne nearly a month ago. London Metal Exchange copper prices staged a rebound after plunging to below $6,400 per tonne in mid March.
Despite the increasing price advantage over refined metal, scrap copper dealers were unwilling to sell, exacerbating a supply shortage, according to SMM’s research team. Downstream users increased the proportion of refined copper in production due to limited low-price scrap available in the market.