Price Difference Between Copper Cathode and Copper Scrap Stays High, Stimulating Arbitrage Trading for Secondary Copper Rod Enterprises [SMM Secondary Copper Daily Commentary]

Published: Jul 17, 2026 13:27

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SMM July 17

Today at 11:30, the futures closing price was 103,850 yuan/mt, down 600 yuan/mt from the previous trading day. The spot premium averaged 400 yuan/mt, up 50 yuan/mt from the previous trading day. The price of copper scrap fell 300 yuan/mt from the previous trading day, and the sales sentiment index for copper scrap dropped to 2.41, while the procurement sentiment index rose to 2.34. The price difference between copper cathode and copper scrap was 3,189 yuan/mt, down 224 yuan/mt from the previous trading day. The price difference between copper cathode rod and secondary copper rod stood at 1,240 yuan/mt. According to an SMM survey, the pullback in copper prices dampened the selling sentiment among copper scrap suppliers. Meanwhile, with the cathode-scrap spread remaining above 3,000 yuan/mt, downstream secondary copper rod enterprises, attracted by arbitrage opportunities in the futures market, continued to actively procure copper scrap. On the day, demand sentiment for copper scrap was relatively high.

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