According to SMM data, from July 29 to August 2, the weekly average price of #1 copper cathode was 73,857 yuan/mt, down 1.24% WoW; the weekly average price of bare bright copper in East China Nonferrous Metals City was 68,040 yuan/mt, down 1.65% WoW; the weekly average price of bundled coarse wire was 68,240 yuan/mt, down 1.65% WoW.
According to SMM data, copper prices continued to decline last week, further reducing the willingness of secondary copper sellers to sell. Traders in Linyi East China Nonferrous Metals City reported a significant decrease in their secondary copper procurement recently. Demand side, due to the shutdown of many secondary copper rod plants, the demand for secondary copper has rapidly declined. In addition, with the unclear implementation of Document No. 783, the secondary copper market quotes have become chaotic, and the outflows from warehouses in Linyi East China Nonferrous Metals City have also significantly decreased. Overall, both the inflows to and pick-up from warehouses of secondary copper in Linyi East China Nonferrous Metals City continued to decline, and the throughput of secondary copper is expected to continue its downward trend.
Looking ahead to this week, copper prices plummeted on Monday and then slightly rebounded, but the most-traded SHFE 2409 copper contract remains at a relatively low level of around 71,400 yuan/mt. Due to the large fluctuations in copper prices, market sentiment has become more cautious, and the willingness of secondary copper sellers to sell is low. Traders in Linyi East China Nonferrous Metals City reported that most manufacturers in the park have already arranged for holidays, resulting in low trading volumes for both buying and selling. Additionally, with the implementation of Document No. 783 in some regions, tax-inclusive quotes have appeared in Linyi East China Nonferrous Metals City, but they account for a small proportion, with most secondary copper still being quoted without tax.
