Downstream Reluctant to Place Large Orders Due to High Copper Prices [SMM Secondary Copper Daily Review]

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SMM February 13

      The futures closing price at 11:30 today was 77,140 yuan/mt, up 540 yuan/mt from the previous trading day. The average spot premiums/discounts remained unchanged at 0 yuan/mt compared to 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 70,300-70,500 yuan/mt, up 200 yuan/mt from the previous trading day. The price difference between primary metal and scrap was 2,246 yuan/mt, up 327 yuan/mt MoM. The price spread between primary and secondary copper rods was 1,010 yuan/mt. According to the SMM survey, due to strong concerns about high copper prices among end-users or traders, they were reluctant to purchase finished cables in large quantities, resulting in sufficient raw material inventory at wire and cable factories. Consequently, orders placed with upstream secondary copper rod enterprises were limited. Secondary copper rod enterprises indicated that they are waiting for next week, expecting orders to rebound if copper prices pull back.