[SMM analysis] the price difference of fine waste is narrowed upside down, but it is difficult to repair and expand it further.

Smm4 June 6, SMM data show that the current bright copper and copper electrolytic copper tax difference is-100 yuan, fine waste price difference has been significantly narrowed compared with late March, but there is no substantial improvement in the resumption of waste copper rod, and it is expected that the fine waste price difference is difficult to repair and expand.

It mainly depends on two aspects: first, the lack of kinetic energy for the continuous recovery of copper prices. During the Ching Ming Festival, the epidemic in Italy was slightly brought under control, but the epidemic in the United States has not yet peaked, and it has even spread to the military system. The latest news says that the number of confirmed cases by the US Air Force and Navy has exceeded 100, which has increased significantly earlier. However, the British Prime Minister's illness is also suspected to have aggravated many days after his diagnosis. It is difficult to make a positive improvement in the overseas epidemic in the short term, which will continue to curb market confidence, resulting in a shortage of fine waste price differentials.

Second, the supply of raw materials is difficult to be guaranteed, and the price difference between fine waste and waste should be expanded and lack of support. Upstream years before the waste copper inventory is still in deep loss, can not be released too much in the short term, the domestic supply of waste copper has been tight prices, catch up with the price of electrolytic copper. In addition, the amount of approval in the first quarter is sufficient, and a new batch of import approvals should be issued soon, but Malaysia is unable to export scrap copper due to restrictions on construction measures, and Europe is also the main source of scrap copper in China. The previous city closure measures will undoubtedly affect the output of scrap copper, and it is expected that this series of unfavorable factors will be gradually transmitted to the domestic scrap copper import end. The tight supply and demand of scrap copper should not change for a period of time, and it is still difficult to widen the price gap significantly.