As the Year-End Approaches, Activity in the Secondary Copper Market of Linyi Metal City Declines [SMM Analysis]

       According to SMM data, from December 23 to December 27, the weekly average price of 1# copper cathode was 74,187 yuan/mt, down 0.04% WoW; the weekly average price of bare bright copper in east China's non-ferrous metal market was 68,800 yuan/mt, down 0.37% WoW; and the weekly average price of baled copper cable scrap (Cu＞99.5%) was 69,000 yuan/mt, down 0.37% WoW.

       According to SMM data, copper prices showed little change WoW this week. However, secondary copper traders in Linyi Metal Market reported increasing difficulties in secondary copper procurement. This was mainly due to reduced overseas supply and a continuous decline in domestic supply as the year-end approached. Additionally, the implementation of the reverse invoicing policy led to heavy market sentiment, with both buyers and sellers acting cautiously, resulting in a decline in market transaction volumes. Consequently, the throughput of secondary copper in Linyi Metal Market showed a significant downward trend this week.

       Looking ahead, as the year-end approaches, secondary copper traders in Linyi Metal Market are expected to focus on collecting payments, leading to a decline in procurement volumes. Coupled with an already tight market supply, the procurement volume of secondary copper in Linyi Metal Market is expected to continue decreasing. However, according to SMM, although secondary copper rod plants reported a significant drop in recent orders, the supply of secondary copper remains so tight that it cannot even meet the production needs of orders on hand. As a result, the procurement demand in the secondary copper rod market is expected to remain strong. Therefore, the inventory levels held by secondary copper traders in Linyi Metal Market remain relatively low. In summary, the activity in the secondary copper market in Linyi Metal Market is expected to gradually decline, and the throughput of secondary copper will continue to decrease.