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[selected SMM Weekly report] the supply of scrap copper is tight and it is obvious that the profits of scrap copper rod manufacturers have shrunk.
Sep 12,2020 11:50CST
translation
Source:SMM
[selected from SMM Weekly report: scrap copper supply is tight and the profits of scrap copper rod manufacturers have shrunk] Copper prices rose at the beginning of the week, and scrap copper traders continued high pre-sale operations, so that in the second half of the week, scrap copper market was in short supply, scrap copper traders gave priority to meet previous high-price orders, and the problem of some scrap copper rod manufacturers purchasing raw materials once again appeared more difficult. The rising cost of purchasing raw materials and the fact that the scrap copper rod is unsalable due to orders and can not afford the price all lead to a narrowing trend in the profit of the scrap copper rod.
The content below was translated by Tencent automatically for reference.

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.

Copper prices rose at the beginning of the week, scrap copper traders continued high pre-sale operations, so that in the second half of the week, the scrap copper market was in short supply, scrap copper traders gave priority to meet the previous high-price orders, and the purchase of raw materials by some scrap copper rod manufacturers once again became more difficult. The price of electrolytic copper in SMM1# fell by 590 yuan on Friday, while the successful purchase price of scrap copper only dropped by about 200 yuan, which can also reflect the increase in the difficulty of purchasing high-quality scrap copper from the price aspect. The production capacity of scrap copper rod in Jiangxi is relatively concentrated, the competition for scrap copper is more fierce, and the transaction price is relatively high in China, so the sources of scrap copper in Shandong and Henan are also inclined to Jiangxi. The rising cost of purchasing raw materials and the fact that the scrap copper rod is unsalable due to orders and can not afford the price all lead to a narrowing trend in the profit of the scrap copper rod.

According to SMM research data, the operating rate of scrap copper rod enterprises in August was 68.28%, down 1.13% from the previous month, a smaller-than-expected decline and a sharp increase of 17.37% over the same period last year. Dragged down by the declining demand for copper in the cable industry downstream of the scrap copper rod, although the orders and start-up of the experienced large scrap copper rod factories remain at a high level, the orders of some small and medium-sized manufacturers did not perform well in August. It is estimated that in September, the operating rate of scrap copper rod enterprises will be 69.89%, an increase of 1.61% from the previous month, which is basically the same as the same period last year, up 15.86% from the same period last year. Scrap copper rod manufacturers generally do not have high expectations for the traditional gold, silver and silver, and do not feel strong potential demand.

The average weekly price of bright copper this week is 46850 yuan / ton, up 340 yuan from the previous month, and the average weekly price difference of fine waste is 2181 yuan / ton, which is 160 yuan / ton lower than that of last week. In terms of imported scrap copper, this week's scrap copper CIF quoted a deduction of 27 cents / lb for the 12-month contract price of Meijing copper, and CIF quoted a deduction of 36 cents / lb for the 12-month contract price of Meijing copper.

"Click to view the historical price of SMM

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

Analysis of hot topics: the scrap copper rod market weakens slightly in August and is still quite good compared with the same period last year.

Copper price forecast next week and focus on economic data

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

During the meeting, the transaction was weak and the supply of goods began to close.

The supply of scrap copper is tight and it is obvious that the profits of waste copper rod manufacturers have shrunk.

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

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