Center of Copper Prices Shifts Upward, Supply of Secondary Copper Raw Material Increases [SMM Weekly Review of Secondary Copper Raw Material]

SMM News on June 13:

         After the center of copper prices rose significantly from last Friday, they maintained sideways movement within the range of 78,500-79,500 yuan/mt this week, with a weekly decline of 100 yuan/mt. The price of bare bright copper in Guangdong remained within the range of 72,800-73,000 yuan/mt, showing an increase of 200 yuan/mt. Following the upward shift in the center of copper prices, many secondary copper rod enterprises indicated that the supply of secondary copper raw materials in the market had recovered this week. Consequently, the price difference between copper cathode rod and secondary copper rod also widened by 200 yuan/mt to 1,500 yuan/mt, driven by a 200 yuan/mt increase in the circulation of secondary copper raw materials.

        According to SMM's weekly sample data on raw material inventory of secondary copper rod enterprises, the inventory stood at 6,600 mt, up 1,250 mt MoM. Despite the still-high prices of secondary copper raw materials, secondary copper rod enterprises reported that they would choose to purchase whenever suppliers or traders were willing to sell. Due to the 200-300 yuan/mt retracement in copper prices on individual trading days during the week, suppliers opted to refuse to budge on prices or even halted sales. Instead, they preferred to purchase more for inventory when copper prices were rising to ensure normal furnace operation and production.

       This week, the CIF quote for #1 copper scrap in the US was priced at a 52-54¢/lb discount to the COMEX July copper contract, while the CIF quote for #2 copper scrap was priced at a 58-60¢/lb discount to the COMEX 3M copper contract. For US brass scrap with a purity of 65-65.5% LME (delivered to non-Chinese regions), the absolute price was $6,200-6,300/mt. The CIF quote for non-US Cu98.5% wire nodules had an LME coefficient of 97-97.25%, and the CIF quote for non-US bare bright copper had an LME coefficient of 99-99.5% LME.

       Looking ahead to next week, if copper prices only maintain sideways movement within a new range, secondary copper raw materials are expected to continue to exhibit high prices and low market circulation.

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