Sellers Held Onto Copper Scrap amid Falling Copper Prices

SHANGHAI, Apr 24 (SMM) – Copper prices went down last week, and suppliers of copper scrap were reluctant to sell, tightening the supply of copper scrap. Meanwhile, the operating rates of some copper rod factories increased, growing the demand for copper scrap. As such, the price difference between copper cathode and copper scrap shrank from 2,350 yuan/mt two Fridays ago to 1,874 yuan/mt last Friday, but copper scrap users still had cost advantages.

Copper rod plants using copper scrap will stock up on copper scrap this week ahead of Labour Day holidays. This will increase the demand for copper scrap, and its supply will continue to tighten. Prices of #1 bare bright copper without invoices averaged 63,600 yuan/mt as of last Friday, up 380 yuan/mt from a week earlier. The average price spread between copper cathode and copper scrap shrank 101 yuan/mt to 2,115 yuan/mt.