The Linyi Metal City market remains sluggish as the market awaits further implementation details of Document No. 783 [SMM Analysis]

According to SMM data, from August 5 to August 9, the weekly average price of 1# copper cathode was 71,585 yuan/mt, down 3.08% MoM; the weekly average price of bare bright copper in East China Nonferrous Metal City was 65,960 yuan/mt, down 3.05% MoM; and the weekly average price of bundled coarse cable was 66,160 yuan/mt, down 3.05% MoM.

SMM data shows that copper prices continued to decline last week, further exacerbating the tight supply situation in the secondary copper market. Secondary copper traders in Linyi Metal City reported that downstream customers are currently finding it more difficult to procure goods, possibly due to the hot weather slowing down the recycling speed of secondary copper. Additionally, the continuous decline in copper prices has heightened the sentiment among secondary copper holders to hoard and be reluctant to sell. Due to the low recycling volume of secondary copper in Linyi Metal City and the shutdown of many secondary copper rod plants, the shipment volume of secondary copper has also significantly decreased, leading to overall sluggish market activity. Overall, the throughput of secondary copper in Linyi Metal City remains at a low level.

According to SMM, copper prices have been running relatively low recently, and the tight supply situation of secondary copper is expected to persist in the short term. From the perspective of secondary copper rod plants, secondary copper traders in Linyi Metal City reported that some local governments in Jiangxi Province have indicated that they will temporarily not implement Document No. 783 and will continue to maintain the original subsidy policy, although the overall implementation situation in Jiangxi Province remains unclear. If the subsidy policy continues, it is expected that many secondary copper rod plants will gradually resume production, and the demand for secondary copper will significantly increase. SMM will continue to follow up on this matter.