EAF steelmakers cut production on tighter scrap supply

Despite rebounding copper prices, Asian spot scrap supply remains tight, with pricing coefficients unexpectedly firm (Bare Bright holding around 98.5%). Concurrently, Western spot offers are shrinking. As the Aurubis Richmond smelter absorbs ~180,000 tonnes annually and US domestic cable shredding capacity rapidly expands, both the volume and quality of US scrap exports to Asia are declining. This structural shift is slashing transoceanic trade, accelerating the era of "regional circulation" for recycled copper. Currently, the squeeze primarily hits intermediate traders with sluggish volumes, while downstream end-consumers report limited immediate impact.

[SMM Tin Midday Review: Both Macro and Fundamental Performances Stabilized, Tin Prices Continued Wild Swings Fluctuating Trend in the Morning]

[SMM Aluminum News Flash] This week, the operating rate of leading secondary aluminum enterprises pulled back slightly WoW, mainly dragged down by weakening demand. Currently, downstream enterprises generally maintain just-needed restocking with low willingness to accept high-priced supplies, and the overall market trading atmosphere remains subdued. On the cost side, primary aluminum prices held up well this week, pushing up production costs for enterprises. Some producers raised their quotes accordingly; however, constrained by lackluster demand follow-through, the price increase of finished products was notably weaker than that on the aluminum scrap side, and industry profit margins remained under pressure and continued to narrow. In the short term, operating rates still face downward p