Poor sales of secondary copper rod, copper rod enterprises reduce raw material procurement [SMM Daily Review of Secondary Copper]

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SMM May 19

      At 11:30 today, the futures closing price was 77,630 yuan/mt, down 720 yuan/mt from the previous trading day. The average spot premiums/discounts were 440 yuan/mt, down 5 yuan/mt from the previous trading day. Today, the price of secondary copper raw material decreased by 300 yuan/mt MoM. The price of bare bright copper in Guangdong was 72,100-72,300 yuan/mt, down 300 yuan/mt from the previous trading day. The price difference between copper cathode and copper scrap was 1,261 yuan/mt, down 406 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 915 yuan/mt. According to the SMM survey, today, secondary copper rod enterprises quoted at premiums of 70 yuan/mt against the futures market. Many secondary copper rod enterprises reported poor transaction conditions, with the final transaction price decreasing by 50-100 yuan/mt. Due to unsatisfactory sales of copper rod, some secondary copper rod enterprises recently reduced their purchases of secondary copper raw material and will resume normal purchases after finished product inventories decrease to a certain extent.