End-User Cable Cargo Pick-Up Slows; Secondary Copper Rod Social Inventory Exceeds Normal Levels [SMM Secondary Copper Daily Review]

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SMM March 19

      At 11:30 today, the futures closing price was 80,700 yuan/mt, up 360 yuan/mt from the previous trading day. The average spot premiums/discounts were 20 yuan/mt, down 5 yuan/mt from the previous trading day. The price of secondary copper raw material rose by 200 yuan/mt MoM. The price of Guangdong bare bright copper was 73,300-73,500 yuan/mt, up 200 yuan/mt from the previous trading day. The price difference between primary metal and scrap was 2,630 yuan/mt, up 244 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,885 yuan/mt. According to the SMM survey, the discount of secondary copper rod against copper futures expanded to 1,500 yuan/mt today, significantly higher than that of anode plates. As a result, many enterprises did not immediately schedule production after taking orders, leaving pending orders of over 1,000 mt per enterprise. Additionally, the continuous expansion of the price difference between primary metal and scrap has led to increased cargo pick-up from secondary copper rod enterprises by traders. However, high copper prices have suppressed downstream consumption, resulting in secondary copper rod social inventory in Guangdong and Hebei being far above normal levels.