Copper Prices Remain Stable, Linyi Metal City Secondary Copper Traders Face Procurement Difficulties [SMM Analysis]

According to SMM data, from October 28 to November 1, the weekly average price of #1 copper cathode was 76,529 yuan/mt, down 0.29% WoW; the weekly average price of bare bright copper in east China was 71,220 yuan/mt, down 0.28% WoW; the weekly average price of baled copper cable scrap was 71,420 yuan/mt, down 0.28% WoW.

According to SMM data, copper prices remained largely stable this week, with only a slight decline. Secondary copper traders in Linyi Metal City reported that procurement was difficult this week, mainly due to frequent short-term drops in copper prices, leading to a strong wait-and-see sentiment among secondary copper holders. As a result, secondary copper procurement in Linyi Metal City saw a significant decline compared to last week. From the consumption side, although cut-throat competition in the secondary copper market has intensified and profit margins are narrow, many manufacturers are prioritizing the production of copper anodes to cope with the tight supply. Overall, secondary copper remains in short supply, and procurement difficulties have led to a decline in secondary copper throughput this week.

Looking ahead to next week, the results of the US election are expected to impact copper prices. The market generally expects the US dollar index to rise, which would suppress copper prices and continue to dampen the enthusiasm of secondary copper holders to sell. However, the conclusion is currently unknown, and the market remains largely in a wait-and-see mode. The secondary copper market continues to be in a state of supply shortage, and the procurement volume of secondary copper largely affects its throughput. The trend next week will depend on the actual results of the US election, and SMM will continue to monitor and analyze the situation.