SHANGHAI, Jul 6 (SMM) – The handling volume of copper scrap in the East China Nonferrous Centre stood at 10,491 mt during June 27 and July 3, down 9,175 or 47% mt from a week ago. According to SMM Prices, the average price of 1# copper cathode stood at 61,382 yuan/mt during June 27 and July 1, a palpable drop of 4,044 yuan/mt or 6% week-on-week. The weekly average price of bare bright copper was 57,100 yuan/mt in Liyin Metals Centre in Shandong province, down 3,350 yuan/mt or 6% from the previous week.
As far as SMM understands, copper scrap prices dropped along with copper last week (June 27-July 3), and traders have cleared up their stocks for fear of further price drops. The market players were also less interest in transactions after copper prices plummeted and available sources reduced.
In addition, downstream scrap users suffered greater losses, and most of which purchased based on orders on hand without building the stocks. Some manufacturers properly reduced or suspended the production to contain the losses, leading to less demand for copper scrap.
Therefore, it is expected that the handling volume of copper scrap in the East China Nonferrous Centre will drop further this week.