SMM, February 28:
This week, copper prices showed a fluctuating trend in the market, with an overall increase of only 100 yuan/mt. In contrast, the price range of bare bright copper in the Guangdong market was 70,500-70,700 yuan/mt, dropping by 300 yuan/mt this week. The secondary copper raw material market remained tight this week. According to the survey, the purchase volume of secondary copper raw materials by yards and scrap dismantling enterprises decreased compared to before. Due to the continuous rise in copper prices before and after the Chinese New Year, many suppliers chose to sell in large quantities, resulting in low inventory of secondary copper raw materials in the market. After copper prices pulled back, suppliers generally showed low willingness to sell, significantly reducing market circulation.
New orders in the end-use market were limited, and copper rod enterprises showed low enthusiasm for purchasing secondary copper raw materials, mainly meeting basic needs. As a result, the raw material inventory of secondary copper rod enterprises decreased from 9,000 mt last week to 8,000 mt this week. During procurement, the quotations from secondary copper rod enterprises were usually lower than those from suppliers, leading to a slight drop of 300 yuan/mt in Guangdong bare bright copper prices.
In terms of imports, although China's countermeasures against US imports did not involve secondary copper raw materials, some traders have started small-scale procurement from the US. However, due to long shipping times, the quantity of imported secondary copper raw materials will not increase significantly in the short term.
This week, the CIF quotation for #1 copper scrap was COMEX 3M copper contract price minus 55-60¢/lb, and for #2 copper scrap, it was COMEX 3M copper contract price minus 65-70¢/lb. The CIF quotation for US brass scrap had an LME coefficient of 67-67.5%, with a fixed price of $6,050-6,100/mt (limited transactions). The CIF quotation for non-US Cu98.5% wire nodules had an LME coefficient of 96.25-96.5%, while the CIF quotation for non-US bare bright copper had an LME coefficient of 98.5-99% LME.
Looking ahead to next week, secondary copper raw material suppliers believe that the supply of secondary copper raw materials will not improve significantly in the short term. If demand persists, secondary copper raw material prices are expected to maintain a fluctuating trend.
