SHANGHAI, Jun 29 (SMM) -
From June 20 to June 26, the throughput of secondary copper in East China Nonferrous Metal City stood at 19,666 mt, a decrease of 2,495 mt or 12% from the previous week. According to SMM data (June 20-June 24), the weekly average price of 1 # copper cathode stood at 65,426 yuan/mt, down 3,336 yuan/mt or 5% from the previous week; the average weekly price of bright copper in Linyi Metal City, Shandong stood at 60,590 yuan/mt, down 3,350 yuan/mt but up 5% from the previous week; the average copper cathode price including tax - weekly average #1 bare bright copper price including tax stood at -185 yuan/mt, down 666 yuan/mt or 138% from the previous week.
According to SMM, copper prices fell sharply last week (June 20-6.26). The prices of secondary copper continued to fall, and traders suffered greater losses. The inventory was high because traders stood firm to the prices, and they intended to sell some of the inventory due to the downward movement of copper prices. But as the price spread of between copper cathode and scrap narrowed, there has been no profits to sell the secondary copper, leading to less shipments. In addition, the losses of downstream scrap using companies have further expanded. As the price spread of between copper cathode and scrap narrowed, the substitution of copper cathode with copper scrap no long exists. New orders have further declined and the operating rates of copper rods produced with copper scrap dropped by 12% month-on-month. The market demand for secondary copper continued to decline. It is expected that the throughput of secondary copper in East China Nonferrous Metal City will continue to decrease this week (June 27-July 3).
