According to SMM data, from October 14 to October 18, the weekly average price of 1# copper cathode was 76,885 yuan/mt, down 1.13% WoW; the weekly average price of bare bright copper in east China was 71,520 yuan/mt, down 0.25% WoW; the weekly average price of baled copper cable scrap (Cu＞99.5%) was 71,720 yuan/mt, down 0.25% WoW.
SMM understands that copper prices fell WoW last week. However, as the most-traded SHFE copper contract remained above 77,000 yuan/mt in the first half of the week, secondary copper holders were moderately active in selling, and secondary copper traders in Linyi Metal Market reported moderate purchasing volumes. In the latter half of the week, as copper prices shifted downward, the difficulty of secondary copper procurement increased significantly. Additionally, due to the delayed implementation of Document No. 783, many secondary copper rod plants resumed production, significantly boosting the demand for secondary copper procurement, and the throughput of secondary copper in Linyi Metal Market also increased accordingly.
Looking ahead to this week, due to the downward trend in copper prices and the current weak consumption demand, the market expects further declines in copper prices, which may suppress the selling enthusiasm of secondary copper holders, making it difficult for Linyi Metal Market to increase secondary copper procurement volumes. From the consumption side, although end-use cable performance is weak, there are many secondary copper rod plants, and secondary copper supply is tight. Secondary copper traders in Linyi Metal Market report strong downstream demand. Overall, the throughput of secondary copper in Linyi Metal Market is expected to remain high.
SMM understands that although secondary copper is currently in short supply, profit margins are relatively limited. This is mainly due to the high number of traders and limited supply, leading many traders to sell at low prices to quickly turn over capital, resulting in strong cut-throat competition in the secondary copper market.
