End-Use Demand Weakens, Leading to Inventory Buildup of Secondary Copper Rod Products [SMM Secondary Copper Daily Review]

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SMM February 27

      Today's futures closing price at 11:30 was 76,880 yuan/mt, unchanged from the previous trading day. The average spot premiums/discounts stood at -105 yuan/mt, up 30 yuan/mt from the previous trading day. The price of secondary copper raw material fell by 100 yuan/mt MoM. Guangdong bare bright copper prices ranged from 70,500-70,700 yuan/mt, down 100 yuan/mt from the previous trading day. The price difference between primary metal and scrap was 1,669 yuan/mt, up 137 yuan/mt MoM. The price spread between primary and secondary copper rods was 795 yuan/mt. According to the SMM survey, the peak consumption season is expected to arrive soon, but end-user wire and cable enterprises hold a pessimistic outlook. Maintaining production levels comparable to previous years would already be the best-case scenario. Consequently, with weak downstream demand, inventories of secondary copper rods have risen to varying degrees across enterprises.