Chinese Copper Prices Rebound Amid Increased Scrap Sales
The copper market has seen an uptick in prices, with the futures closing price reaching 107,570 yuan/mt on August 21. This represents a gain of 200 yuan/mt from the previous trading day. The average spot premium also saw a decrease, down 75 yuan/mt compared to the previous day.
The copper scrap market has been particularly affected, with prices rising by 300 yuan/mt. According to an SMM survey, this is due to increased sales of copper scrap at higher prices. Meanwhile, the procurement sentiment index for secondary copper rod remained flat, while the circulation volume of copper scrap in the market saw an increase.
The price difference between copper cathode and copper scrap decreased by 214 yuan/mt, standing at 4,173 yuan/mt on August 21. This could indicate a shift in the market dynamics, with copper scrap suppliers potentially benefiting from the increased demand.