China Copper Scrap Market Slumps Amid Price Decline and Supply Crunch

Copper scrap trading plummeted in China on August 18 as prices continued to fall and supplies remained scarce, according to Mysteel. The decline in copper prices led to increased purchasing sentiment among downstream buyers, while traders became more active after a contract rollover. However, the market for copper scrap was severely impacted by low prices and a lack of supply.

The real estate sector's current adjustment period has further reduced the output of related scrap materials, exacerbating the scarcity of brass scrap and supporting scrap prices. As a result, processors' profits were squeezed even tighter. On the other hand, refined copper trading rebounded on August 18, with spot premiums surging across major markets.

Trading in China's copper semis market generally recovered due to falling raw material prices. Copper rod, tube, and bar consumption remained stable in sectors such as power grid and home appliances, supporting a firm floor. Demand for copper plate/strip and foil was relatively stronger, indicating growth in end-use sectors like new energy, energy storage, and high-end electronics manufacturing.