SMM May 23 News:
Copper prices fluctuated rangebound during the week, down 200 yuan/mt. Bare bright copper prices in Guangdong remained firm, with no change. As copper prices fluctuated downward, suppliers of secondary copper raw materials refused to budge on prices, narrowing the price difference between copper cathode and copper scrap from 1,300 yuan/mt to 1,000 yuan/mt. Daily quotes from secondary copper raw material suppliers were significantly higher than reasonable levels. However, with insufficient orders on hand, secondary copper rod enterprises were not in a hurry to seek more secondary copper raw material sources. As a result, the raw material inventory of secondary copper rod enterprises this week was 3,480 mt, down 1,920 mt MoM.
In addition, secondary copper raw material suppliers currently report that in daily purchases, both secondary copper rod raw materials and copper anode raw materials are in short supply. With high purchase prices, selling prices are also forced to rise. The continued shortage of high-grade secondary copper raw materials is not only due to the downward fluctuation of copper prices but also because many dismantling enterprises have reported a decrease in scrap quantities this year. As the trade war between China and the US is unlikely to reach a consensus in the short term, and domestic economic recovery is slow, insufficient consumer spending has led to extended scrapping cycles for various home appliances and industrial equipment, resulting in insufficient supply of secondary copper raw materials. It is expected that the tight supply of secondary copper raw materials will persist throughout 2025.
Looking ahead to next week, the off-season will significantly reduce copper consumption, and copper prices will remain unchanged. Secondary copper raw material suppliers will continue to refuse to budge on prices.
