[SMM Weekly selection] Copper prices continue to be good for the scrap copper industry, but the start-up level is still restricted by raw materials.

Published: Jul 4, 2020 11:15

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[SMM Weekly selection: copper prices continue to be good for the scrap copper industry, but the starting level is still restricted by raw materials] Copper prices continue to rise this week, some scrap copper suppliers keep gambling mentality, hold back goods and hesitate to sell, wait for copper prices to fall over the weekend, start shipping to avoid risks, and high copper prices as a whole are still good for scrap copper merchants to ship. On July 1, the recycled copper (brass) standard has officially landed on schedule, and the relevant departments are speeding up the introduction of relevant qualification certification and regulatory measures, but it will take some time before they are actually available. Industry insiders expect the new standards to be available in September, but most companies have almost run out of approvals in the second quarter.

This week, "SMM Copper Industry chain Weekly report" was released, and the editor selected hot topics, prices, market or major changes in the industry chain and published articles for your reference.

Supply end

Copper prices continued to rise this week, some scrap copper suppliers keep gambling psychology, cover goods and hesitate to sell, wait for copper prices to fall over the weekend, start shipping to avoid risk, high copper prices as a whole is still good for scrap copper shipments. On July 1, the recycled copper (brass) standard has officially landed on schedule, and the relevant departments are speeding up the introduction of relevant qualification certification and regulatory measures, but it will take some time before they are actually available. According to SMM, industry insiders have high expectations for the availability of the new standards in September, and they still rely on approvals to import scrap copper for the time being, but most enterprises have basically run out of approvals in the second quarter. In order to make up for the gap, China has a high enthusiasm for the import of copper ingots which are not restricted by approval documents. At present, the data of the application for approval for the third quarter of the waste enterprises have been submitted, but according to the trend of decreasing approval every quarter, some views think that the volume of the new round of approval should not be very large, and the landing of the recycled copper standard will also have an impact on the subsequent approval volume, so it is difficult to make a judgment in terms of policy.

Demand side

As a result of the rise in copper prices, the price difference between fine copper rods has increased by more than 2000 yuan, and the operating rate of scrap copper rods has returned to the peak season level, there is a lot of competition among manufacturers, the price of scrap copper rods has risen relatively slowly, and the price of scrap copper rods in most areas has been deducted by about 1000 yuan on the disk, which is open again with the price of refined copper rods. Even if high copper prices dampen downstream demand, cheap scrap copper poles are still favored downstream and overall orders remain good. Scrap copper rod manufacturers want to further restart additional production lines, but there is supply pressure on raw materials, so it is difficult to support the operating rate to rise again.

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Catalogue of "SMM Copper Industry chain Weekly report" in this issue

Analysis of hot topics: the impact of the reduction of copper concentrate imports in May has not been fully reflected.

Copper price forecast next week and focus on economic data

SMM data: spot discount, inventory at home and abroad, refined waste price difference

The CSPT team determines the price of the floor in the third quarter, causing concern about the epidemic in Chile.

Copper prices continue to be good for the scrap copper industry, but the level of start-up is still restricted by raw materials.

Local trading situation and output of electrolytic copper

Copper trade market analysis (Yangshan copper premium trend, import profit and loss data)

The latest situation of enterprise research: data and analysis of operating rate of copper enterprises

Maintenance trend of smelter

LME&COMEX: copper inventory and cancellation warehouse receipt ratio, LME copper spot discount

Dynamic news of enterprises at home and abroad

Scan the QR code application report for free

"SMM China Copper Industry chain High-end report" includes: copper industry chain market changes, future views, monthly updates and interpretation of hot events, quantitative analysis of copper industry chain upstream and downstream output, import and export, inventory, cost, price and so on. And exclusively publish the monthly output data, operating rate and new items of the top ten copper smelting or processing enterprises in China. "View details

The "SMM China Copper Industry chain routine report" includes changes in exclusive data markets from copper mines, smelters to copper processing materials, spot to futures markets, future views, and weekly updates of hot events, focusing on contradictions that have changed greatly during the week. "View details

Scrap metal approval import and export

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.

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