SMM, November 6:
This week, LME copper prices showed a clear weakening trend overall. LME copper opened at $14,193/mt on Monday, then continued to pull back, with the weekly decline reaching about 2.5% by Thursday.
As copper prices pulled back, downstream enterprises' purchase willingness improved somewhat, and some buyers began raising their purchase quotes for copper scrap. At the same time, however, the rapid decline in copper prices also significantly strengthened the hold-back sentiment among ex-China suppliers. According to market feedback, although some downstream enterprises had proactively raised their purchase quotes, it was still difficult to secure sufficient supply. Under the combined effect of persistently tight supply and sellers holding back from selling, the LME coefficient for ex-China copper scrap edged up again this week.
In terms of trading, the market was actually rather sluggish this week. The main reason was that copper prices pulled back quickly, and some suppliers believed current prices were not ideal. With limited capital pressure, they preferred to hold off on shipments and wait for copper prices to stabilize or rebound before selling. Although downstream buying improved, the willingness to trade among buyers and sellers did not improve in tandem, and actual trading volume was therefore significantly constrained.
Looking ahead to next week, copper prices are expected to remain in the doldrums. Against the backdrop of tight copper scrap supply, downstream enterprises may continue to raise purchase quotes to secure limited supply. However, if copper prices continue to weaken, the hold-back sentiment among ex-China suppliers is expected to strengthen further, and actual market trading is expected to remain relatively sluggish. In terms of prices, driven by both buyers raising quotes and sellers holding back from selling, the LME coefficient for ex-China copper scrap is expected to still have some upside.
