SMM Exclusive Survey: Current Situation of Ningbo Secondary Copper Raw Material Market [SMM Analysis]

Recently, according to several traders, the current market circulation of secondary copper raw materials is scarce. To understand the situation, the SMM survey team went to Zhenhai District, Ningbo, to conduct on-site inspections of the main warehouses in the area. So, what is the actual situation?

There is a certain imbalance in the supply structure of secondary copper raw materials in the Ningbo market

The SMM survey team inspected about 10 yards in the Zhenhai area and found that these warehouses generally have a tight supply issue, especially with a severe shortage of red copper. The survey found that the existing types of red copper in the warehouses are mainly copper wire nodules, flat bars, and copper pipe & tube, while the quantity of bare bright copper wire is relatively small. There is a significant gap in the supply of secondary copper raw materials. However, due to the relatively stable demand for brass billets in the Ningbo market and the relatively small fluctuations in brass prices, the existing inventory in the warehouses is mainly brass. Meanwhile, the new customs standards were officially implemented on November 15, and it is expected that the import volume of brass will increase. With relatively stable demand, the inventory of brass in the warehouses is expected to increase.

Tight Supply, Ningbo Traders Stand Firm on Quotes

At the end of September, the significant rise in copper prices also led to an increase in secondary copper raw material prices. As of September 30, the average price of bare bright copper wire in Zhejiang had reached 78,100 yuan/mt. Although copper prices subsequently retreated, secondary copper raw material prices remained fluctuating within the high range of 76,000-77,000 yuan/mt. Entering November, the overall strength of the US dollar exerted some pressure on copper prices, but secondary copper raw material prices remained high. According to traders in Zhejiang, due to the current tight supply of copper scrap, they are not worried about sales issues, thus maintaining relatively high levels in their daily quotes.

In addition, during this visit to Zhenhai, it was found that the warehouses in Ningbo Zhenhai are well-managed and relatively concentrated. Each warehouse provides high-quality storage services, such as loading and unloading, packaging, and transportation, to meet the needs of different customers. Meanwhile, many old warehouses are being demolished and renovated, and more industrial parks will be established in the future.