Gradual Recovery of Terminal Demand is Expected to Balance The Supply and Demand of Copper Scrap in March

SHANGHAI, Mar 16 (SMM) - Approaching the Two Sessions in March, more policies supporting infrastructure and real estate sectors will be implemented, which will boost the recovery of terminal consumption. The continuous release of favourable macroeconomic policies will drive copper prices to rise again. If the absolute prices are high, the copper scrap will be more cost-effective, encouraging the demand release in March. It is worth noting that due to the incomplete recovery of downstream consumption in February, the secondary copper rod factories have accumulated a large amount of finished product inventory. Therefore, in March, the secondary copper rod factories may focus on reducing their finished product inventory, and thus the demand for copper scrap will be released slowly.