Supply of Copper Scrap with Invoice Tightens Further as Fake Invoice Crackdowns Continue, SMM Says

Published: Aug 7, 2017 14:32

Save

Supply of copper scrap with value-added tax (VAT) invoice is becoming increasingly tighter as crackdowns on fake VAT invoice are still under way in Jiangxi and other regions, SMM survey showed.

SHANGHAI, Aug. 7 (SMM) – Supply of copper scrap with value-added tax (VAT) invoice is becoming increasingly tighter as crackdowns on fake VAT invoice are still under way in Jiangxi and other regions, SMM survey showed.

Why Sellers Dominate in Shanghai Imported Copper Market? SMM Reports

Traders were forced to cut prices of copper scrap without VAT invoice. VAT invoice purchasing costs have reached 9% of copper scrap sales value, SMM learned.

Overall, copper scrap supply increased, though, as cargo holders became more willing to sell after copper prices rose.

Prices for #1 bare bright copper averaged 48,077 yuan/tonne last week, up 1,001 yuan/tonne on a weekly basis.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

China copper scrap supply

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

3 hours ago

Nan Ya Raises Copper Clad Laminates Prices by 20% Amid Rising Raw Material Costs and AI Demand

On August 14, Nan Ya issued another price increase notice. Driven by rising raw material costs for copper foil, fiberglass cloth, and resin, as well as tight supply and demand in electronic materials fueled by AI computing demand, prices of copper clad laminates and base materials will be raised by 20% effective September 1. Nan Ya stated that the electronic materials industry is currently in a golden cycle, with capital expansion by US cloud vendors and AI server demand driving demand for mid-to-high-end materials, while limited new capacity has created a supply-demand gap. The news pushed Nan Ya's stock to the daily limit intraday.

3 hours ago

High Copper Prices Lead to Reduced Cable and Wire Inventories, Operating Rates Expected to Fall Further

In terms of cable and wire inventories this week, constrained by high copper prices, cable and wire enterprises generally adopted a rigid-demand purchasing strategy, locking in prices for small restocking only during minor copper price pullbacks. As a result, raw material inventories edged down 0.49% month-on-month. To ease inventory pressure, downstream enterprises prioritized drawing down finished goods inventories, which fell 2.33% month-on-month. Looking ahead to next week, the weak demand pattern across all segments is unlikely to reverse, and the industry lacks short-term recovery momentum. Under the dual pressure of high copper prices and off-season demand, SMM expects the copper cable and wire operating rate to fall a further 1.18 percentage points month-on-month to 61.08% next week (August 14–August 20), representing a year-on-year decline of 7.8 percentage points.

3 hours ago

Copper Cable and Wire Operating Rate Falls to 62.25% Amid High Prices and Weak Demand

This week (August 7–August 13), SMM's copper cable and wire enterprise operating rate came in at 62.25%, down 1.4 percentage points month-on-month and 7.05 percentage points year-on-year. Copper prices remained elevated throughout the week, continuing to suppress downstream purchasing enthusiasm. Combined with overall weak terminal orders and no substantive improvement on the demand side, the industry's production load continued to decline.

3 hours ago