Copper Prices Pull Back, Stimulating Recovery in End-Use Demand [SMM Analysis]

SMM March 29 News: This week, copper prices reacted sharply to Trump's 25% tariff on imported copper cathode, surging to 83,270 yuan/mt before quickly pulling back to 80,380 yuan/mt. The rapid decline in copper prices did not drive significant demand growth, and with current copper prices still at a relatively high level, many end-user wire and cable enterprises adopted a wait-and-see attitude. Most interviewed enterprises indicated they would only place orders for restocking once copper prices fell back to 78,000 yuan/mt. When copper prices are relatively high, wire and cable enterprises consider purchasing secondary copper rod as raw material. According to data on the price difference between copper cathode rod and secondary copper rod, although copper prices have pulled back, they remain above the advantageous line of 1,200 yuan/mt, with the economic benefits of secondary copper rod continuing to be evident. Secondary copper rod enterprises reported that downstream purchasing sentiment improved WoW, and inventory resistance eased. From the perspective of raw material and finished product inventories of secondary copper rod enterprises, finished product inventories of secondary copper rod declined as substitution effects emerged, while secondary copper raw material inventories showed an upward trend. Due to the continuous rise in copper prices last week, secondary copper raw material suppliers controlled shipments. According to the person in charge of the interviewed secondary copper raw material yards, they were optimistic about short-term copper price increases and were not in a hurry to sell their secondary copper raw materials. However, after Wednesday, copper prices plummeted, and secondary copper raw material suppliers, affected by the sentiment of inventory depreciation risks, sold at high prices, leading to a rebound in raw material inventories of secondary copper rod enterprises. If copper prices continue to pull back next week, stimulating the restocking sentiment of end-user wire and cable enterprises, finished product inventories of secondary copper rod enterprises may further decline. 》Order to view SMM metal spot historical prices 》Click to view SMM copper industry chain database