SHANGHAI, Jul 8 (SMM) – Malaysia announced on June 27 that the full lockdown would be indefinitely extended until the number of newly confirmed cases of Covid-19 fell below 4,000. The extension of the lockdown will undoubtedly affect exports of secondary copper to China. The Suez Canal congestion that took place three months ago has impacted China. Hong Kong, Shenzhen, Guangdong and South China ports have been congested for a long period. With the economic recovery in Europe and the United States, the increase in import demand has also caused congestion in local ports, leading to a major global congestion. That drove unstable shipping schedules, shortage of containers and soaring shipping prices. Multiple factors have affect China’s secondary copper imports.
Domestic secondary copper supply remained tight, and prices were resistant to declines, resulting in poor production efficiency for downstream scrap using companies. Supplies increased at the end of the week when copper prices hovered at lows, which could meet short-term raw materials demand.
Prices of #1 bare bright copper without invoices averaged 62,230 yuan/mt last week, up 140 yuan/mt from the previous week. The average price spread between copper cathode and copper scrap shrank 102 yuan/mt to 1,052 yuan/mt.
For copper scrap, cif quotes for #1 copper scrap were Comex December copper less $0.17-0.18/lb, and offers for birch/cliff were Comex December copper less $0.31-0.32/lb. US brass was quoted at $5,980-6,050/mt. The coefficient for copper granules (98%) against LME copper stood at 94.5% on a cif basis, and the coefficient for bare bright copper against LME copper at 97.5-98%, on a cif basis.
