China Copper Scrap Prices Plunge, Refined-Scrap Spread Widens
Copper scrap prices in China experienced larger declines last week compared to refined copper prices, resulting in a wider refined-scrap price spread. The weekly average import prices for red copper scrap (99%-99.5% Cu) decreased slightly, following the decline in copper and copper scrap prices. However, copper scrap import margins remain deeply negative, ranging from -Yuan 1,356.42/tonne to -Yuan 439.93/tonne.
The supply of copper scrap in China remains tight due to weak spot market trading. Downstream buyers consistently depressed purchase prices, squeezing upstream traders' margins and weakening their willingness to sell. Meanwhile, the industry is in its traditional consumption off-season, resulting in limited available sources.
China's copper scrap market trading volumes fell week on week last week, with downstream firms weighed down by the consumption off-season. Although the refined-scrap copper price spread remained wide, invoice-related constraints hampered finished product sales, further weakening overall raw material purchasing appetite.