March Copper Anode Supply from Scrap May Decline, Domestic Processing Fees Tend to Pull Back Again [SMM Analysis]

Published: Feb 28, 2025 17:05

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[SMM Analysis: Domestic Supply of Scrap-Based Copper Anode May Decline in March, Processing Fees Tend to Pull Back Again] In February 2025, domestic blister copper RCs in south China were quoted at 900-1,100 yuan/mt, with an average of 1,000 yuan/mt, up 200 yuan/mt MoM; domestic blister copper RCs in north China were quoted at 700-900 yuan/mt, with an average of 800 yuan/mt, remaining flat MoM...

SMM February 28 News: SMM reported that in February 2025, domestic blister copper RCs in south China were quoted at 900-1,100 yuan/mt, with an average of 1,000 yuan/mt, up 200 yuan/mt MoM; in north China, blister copper RCs were quoted at 700-900 yuan/mt, with an average of 800 yuan/mt, remaining flat MoM; CIF blister copper RCs were quoted at $90-95/mt, with an average of $92.5/mt, up $2.5/mt MoM. In February, blister copper RCs rebounded both domestically and internationally. In the domestic market, demand side, smelters completed pre-holiday stockpiling before the Chinese New Year, and post-holiday inventories remained relatively ample. Supply side, copper prices rose before and after the holiday, prompting secondary copper raw material suppliers to actively sell. Many copper anode producers using scrap had sufficient raw material inventories and quickly resumed production after the holiday. For imported blister copper, long-term contracts were mostly signed at the beginning of the year. Supported by the rebound in domestic spot processing fees, imported RCs did not deteriorate further. However, in March, domestic blister copper and anode plate spot processing fees in south China showed a pullback trend. This week, SMM reported that domestic blister copper RCs in south China were quoted at 700-1,000 yuan/mt, with an average of 850 yuan/mt, down 200 yuan/mt MoM; in north China, blister copper RCs were quoted at 700-900 yuan/mt, with an average of 800 yuan/mt, remaining flat MoM; CIF blister copper RCs were quoted at $90-95/mt, with an average of $92.5/mt, remaining flat MoM; domestic anode plate processing fees were quoted at 600-700 yuan/mt, with an average of 650 yuan/mt, down 100 yuan/mt MoM. SMM expects the supply of copper anodes using scrap to decline in March due to the following reasons: 1. After mid-February, copper prices fluctuated rangebound with a slight downward shift in the center, weakening the willingness of secondary copper raw material suppliers to sell, narrowing the price difference between primary metal and scrap, and reducing the domestic supply of copper scrap raw materials; 2. After mid-February, the SHFE/LME price ratio inverted significantly, coupled with some traders suspending imports from the US around the time of Trump's inauguration, leading to an expected decline in copper scrap imports; 3. Currently, secondary copper rod prices are more favorable than anode plates, causing some anode plate capacity to shift to secondary copper rods. In summary, with supply trending downward, domestic copper anode spot processing fees are expected to decline in March. 》Subscribe to View SMM Historical Spot Metal Prices》Click to View the SMM Copper Industry Chain Database

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