High Raw Material Prices Lead to Slowdown in Production Pace of Secondary Copper Rod Enterprises [SMM Daily Review of Secondary Copper]

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SMM May 21

      At 11:30 today, the futures closing price was 78,150 yuan/mt, up 260 yuan/mt from the previous trading day. The average spot premiums/discounts were 275 yuan/mt, down 115 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 1,191 yuan/mt, down 174 yuan/mt WoW. The price difference between copper cathode rod and secondary copper rod was 1,115 yuan/mt. According to the SMM survey, amidst fluctuating copper prices and the sustained high prices of secondary copper raw material, secondary copper rod sales have incurred losses of 200-300 yuan/mt since May. Many copper rod enterprises have slowed down their production pace, producing only 2-3 furnaces of secondary copper rod per week.