SHANGHAI, Feb 27 (SMM) – Copper prices spiked to exceed 70,500 yuan/mt this week, the highest level since after the Chinese New Year holidays. Copper scrap suppliers sold at highs and the supply of copper scrap remained ample this week. End-user consumption has not fully recovered for now, and new orders from downstream small and medium-sized wire and cable factories were limited. Therefore, some copper rod plants using copper scrap gradually slowed down production last week. This, combined with high absolute price for copper scrap, kept copper scrap rod plants restocking cautiously.
Favourable macro policies are expected ahead of the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC), which will bolster copper prices. Typically, rising copper prices incentivise suppliers to offer copper scrap inventories for sale. Therefore, copper scrap supply will be ample in the near future.
