According to SMM data from August 26 to August 30, the weekly average price of 1# copper cathode was 74,393 yuan/mt, up 0.82% WoW; the weekly average price of bare bright copper in East China Nonferrous Metals City was 68,880 yuan/mt, up 1.26% WoW; the weekly average price of baled copper cable scrap (Cu＞99.5%) was 69,080 yuan/mt, up 1.26% WoW.
According to SMM data, the focus of copper prices continued to rise last week, and secondary copper holders were quite willing to sell. Linyi Metal City secondary copper traders reported that their procurement volume was acceptable and had been continuously increasing compared to before. Some secondary copper traders were optimistic about the market outlook and had some stockpiling actions. Additionally, the procurement demand from secondary copper rod plants also continued to increase compared to before, but the growth was not significant. Overall, the supply of secondary copper increased compared to before but still did not reach a sufficient level. Due to the rise in copper prices, the increase in supply led to an increase in throughput.
Looking ahead, this week, the market is affected by the weakening U.S. economy, with concerns dragging down copper prices. Additionally, the decline in crude oil prices also has some impact on copper prices. The weakening copper prices have significantly hit the willingness of secondary copper holders to sell. According to Linyi Metal City secondary copper traders, their procurement volume has significantly decreased, and their upstream willingness to sell is very low. On the demand side, Linyi Metal City secondary copper traders reported that the current Document No. 783 still affects the procurement of secondary copper rod plants, and some manufacturers no longer purchase secondary copper without invoices. Additionally, a major factory in Jiangxi has stopped procurement. In summary, due to the impact of copper prices, the contraction in supply will cause the throughput of secondary copper to fall this week.
