[SMM analysis] the ring ratio of price difference between fine and waste is enlarged, but the kinetic energy is increased or insufficient.

SMM4 June 19, SMM data show that in the copper processing end of bright copper and copper electrolytic copper containing tax difference is 256 yuan, 152 yuan / ton larger than last Friday, and there is still a lot of distance with the reasonable price difference, and that at this stage the possibility of rapid expansion of the price difference between fine waste and waste is not great.

The main reason is that although the recent macro mood has improved significantly, helping to push the main contract of copper in Shanghai to above 42000, but the overseas epidemic has not yet completely ended, and copper prices lack the momentum of a sustained rebound in the short term. It is considered that the shock has been running for a period of time, and the probability of preparing for a follow-up rebound is higher. In addition, Malaysia, some European countries due to restrictions on start-up, or lack of ports, such as the export of copper scrap is blocked, domestic copper scrap supply in the expected period of time will continue to be tight, traders shipping prices are not low, catch up with the increase in electrolytic copper.

Under the condition that the price difference of waste copper rod is small and the raw material is difficult to be guaranteed, the operating rate still shows no sign of improvement. According to SMM survey data, the operating rate of scrap copper rod enterprises in March is 18.54%, and the operating rate of scrap copper rod enterprises in April is expected to be 18.68%.