SHANGHAI, Mar 14 - Last week, copper prices were still running between 68,500-70,000 yuan/mt. The suppliers of copper scrap sold at highs and purchased on the dip. As copper prices moved in a narrower range last week, the profit for copper scrap suppliers was reduced, thus suppressing the enthusiasm for selling. At the same time, the demand for copper scrap from downstream copper scrap rod factories did not increased as expected. The main reason is that although wire and cable factories have started to actively purchase goods in March, there was a large backlog of copper scrap rod at both traders and producers. The resultant weakening of production enthusiasm at copper scrap rod plants limited demand for copper scrap.

Prices of #1 bare bright copper without invoices averaged 63,680 yuan/mt as of Friday, up 40 yuan/mt from a week earlier. The average price spread between copper cathode and copper scrap shrank 55 yuan/mt to 1,667 yuan/mt. The price spread between copper scrap and copper cathode, though narrower, remained advantageous for copper scrap users.

For copper scrap, cif quotes for #1 copper scrap were Comex July copper prices less $0.1-0.12/lb, and offers for birch/cliff were Comex July copper prices less $0.22-0.24/lb. The coefficient for US brass against LME copper was 67-68.25%, with the fixed prices of $6,030-6,100/mt. The coefficient for copper granules (Cu 98.5%) against LME copper was 95.25-96% on a cif basis, and the coefficient for bare bright copper against LME copper at 97.75-98.5%, on a cif basis.