Weak copper prices, little circulation of copper scrap in the market [SMM Secondary Copper Daily Review]

SMM July 1

      At 11:30 today, the futures closing price was 102,020 yuan/mt, down 490 yuan/mt from the previous trading day. The average spot premiums were 40 yuan/mt, up 40 yuan/mt from the previous trading day. Copper scrap prices fell 100 yuan/mt from the previous trading day. The sales sentiment index for copper scrap dropped to 2.36, while the procurement sentiment index rose to 2.48. The price difference between copper cathode and copper scrap was 1,222 yuan/mt, down 338 yuan/mt from the previous trading day. The price difference between copper cathode rod and secondary copper rod was 160 yuan/mt. According to the SMM survey, entering the high-temperature off-season in July, secondary copper rod enterprises reported a decline in downstream orders. At the same time, copper prices continued to decline, and copper scrap traders held back from selling, leading to relatively high copper scrap prices. As a result, secondary copper rod prices were quoted at a premium of 200-300 yuan/mt over futures, with transactions remaining extremely sluggish.