Sino-US Trade Relations Ease, Market Expects Increase in Copper Consumption [SMM Secondary Copper Daily Review]

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SMM May 14

      At 11:30 today, the futures closing price was 78,940 yuan/mt, up 750 yuan/mt from the previous trading day. The average spot premiums/discounts were -25 yuan/mt, down 15 yuan/mt from the previous trading day. Today, the price of secondary copper raw material rose by 300 yuan/mt MoM. The price of bare bright copper in Guangdong was 72,500-72,700 yuan/mt, up 300 yuan/mt from the previous trading day. The price difference between copper cathode and copper scrap was 1,681 yuan/mt, up 416 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,315 yuan/mt. According to the SMM survey, after the midday session, due to the rapid rise in copper prices, secondary copper rod enterprises indicated that suppliers did not choose to sell at high prices but instead reduced shipments. To some extent, the suppliers' reduced shipments reflect a bullish outlook on future copper prices. Amid the temporary easing of Sino-US trade relations, export orders for copper semis processing enterprises have only temporarily rebounded to the level before the tariff hike, with no additional new orders, and copper consumption has not exceeded expectations for the time being.