Economic Benefits of Secondary Copper Rods Emerge, but Limited Orders Fail to Support Wire and Cable Enterprise Procurement Demand [SMM Secondary Copper Daily Review]

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SMM January 7

      As of 11:30 today, the futures closing price was 74,210 yuan/mt, up 450 yuan/mt from the previous trading day. The average spot premiums/discounts stood at 115 yuan/mt, down 10 yuan/mt from the previous trading day. The price of secondary copper raw material rose by 200 yuan/mt MoM today. The price of Guangdong bare bright copper was 68,100-68,300 yuan/mt, up 200 yuan/mt from the previous trading day. The price difference between primary metal and scrap was 1,772 yuan/mt, up 227 yuan/mt MoM. The price difference between primary metal and secondary copper rod was 1,195 yuan/mt. According to the SMM survey, the price differences between primary metal and scrap, as well as between primary metal and secondary copper rod, have been widening in recent days. However, due to limited new orders from end-user enterprises after the New Year’s Day holiday, some companies have decided to bring forward the Chinese New Year break. As a result, the economic benefits of secondary copper rod have gradually become evident, but the weak demand from end-users has failed to support active procurement by consumer enterprises. Today, transactions of secondary copper rod were limited.