SHANGHAI, Jun. 25 (SMM) – The share of scrap copper used by copper plate, sheet, strip and foil producers in China edged down 1 percentage point to 17.98% in May, SMM learns from its latest survey of 21 such enterprises.
The price gap between #1 bare bright and refined copper remained large at 1,500 yuan per tonne during May, and high copper premiums in China squeezed margins at copper fabricators. As such, some copper plate, sheet, strip and foil producers turned to scrap copper.
Nevertheless, scrap copper consumption at these producers was actually dragged down by lower orders.
The ratio of raw material consumption at the surveyed producers remained little changed in May at 24.74%. Some producers that cut back on raw material buying in April made some purchases in May, but most other producers were still limiting purchases during the month due to high spot copper prices and declining orders.