Higher costs, low season keep processing charges for copper rods flat in Jan

SHANGHAI, Feb 1 (SMM) – SMM assessed processing charges of 8mm copper rods for electrical applications in the eastern Chinese market at 600-750 yuan/mt in January, and charges of copper rods for manufacturing enamelled wire at 750-900 yuan/mt in eastern markets. Both remained flat from December. 

Even as CNY transport load controls grew costs, processors chose not to raise processing charges as they saw poor downstream demand in the traditional low season.

Keen to destock and improve cash flow issues ahead of CNY, copper rod processors mostly kept their processing charges flat on the month, SMM learned. 

For February, CNY suspension and maintenance will significantly lower copper rod production, which will grow optimisn across processors on downstream demand. This is likely to bolster processing charges of copper rods in February, SMM expects.