SHANGHAI, Jun 3 (SMM) – Market mood was bullish as copper prices soared after the Labour Day holidays. Upstream recycling outlets and intermediate traders held cargoes back, leading to tight supply of goods available in the spot market. Scrap users once had difficulty in restocking enough copper scrap, and had to reduce orders, and some producers even lowered their operating rates.
Copper prices trended lower amid China's recent regulatory announcements. Suppliers began to ship cargoes and copper scrap re-flowed into the market, supporting restocking and operating rates at scrap users. Supply and demand of copper scrap loosened after tightening in May.
According to customs data, copper scrap imports totalled 167,800 mt in April, down 2.46% month on month. Imports totalled 531,500 mt in January-April, up 81.78% year on year. Imports fell in April, which was in line with expectations, due to high base of copper scrap imports in March, yet the absolute amount was high.
Overseas market stood firm in May while domestic copper prices weakened relatively. Copper scrap prices were lower than the imported cargoes, pressuring on restocking of imported goods by scrap users. Imports by traders declined.
Imports are expected to decline 160,000 mt in May due to higher value of previous period. Copper ingot imports stood at 43,700 mt in April, down 14.66% month on month. Imports totalled 175,700 mt in January-April, up 35% year on year.
