LME Will Reduce Daily Limit of Aluminium and Copper to 12% from July 24

This week, SMM headed to various copper scrap yards in Zhenhai, Ningbo for field visits. Since the implementation of reverse invoicing this year, many scrap utilization enterprises have been unable to carry out reverse invoicing on a large scale, forcing them to increase their procurement volume of imported copper scrap

[SMM Analysis: Visit to Ningbo Zhenhai Copper Scrap Yard — High-Grade Copper Scrap in Short Supply, #2 Copper Semis Dominate] This week, SMM headed to major copper scrap yards in Ningbo's Zhenhai district for a visit. Since the beginning of this year, due to the implementation of "reverse invoicing" in the copper scrap industry, many scrap utilization enterprises were unable to carry out large-scale "reverse invoicing" and had to increase their procurement volume of imported copper scrap. Based on the visit, inventory of copper scrap at major yards was not ample. As demand for copper scrap outside China continued to grow, yard managers also indicated that imports of copper scrap were expected to decline in the future...

According to SMM's observations, since July, copper cathode prices have risen from 103,000 yuan/mt to 108,600 yuan/mt, an increase of over 6,400 yuan/mt, but the price of domestic bare bright copper wire (excluding tax) only rose from 90,000 yuan/mt to 91,700 yuan/mt, an increase of less than 1,800 yuan/mt