Chinese Copper Scrap Prices Remain Firm Amid Volatile Market

Copper scrap prices in China remained relatively firm last week despite a decline in refined copper prices. The weekly average import price for red copper scrap (99%-99.5% Cu) fell slightly, but the copper scrap import profit increased sharply due to volatile domestic and overseas prices.

China's copper scrap spot market circulation improved modestly last week, with upstream traders prioritizing delivering previous high-priced orders early in the week. As prices rose later, trading sentiment improved, and small and medium-sized sellers became more willing to sell. However, insufficient low-priced inventory narrowed trading margins, making a significant increase in shipments unlikely.

The secondary copper processing industry is expected to continue operating at low levels approaching the holidays, with raw material restocking demand unlikely to improve significantly. The core contradiction in the sector is not simply insufficient demand or excess supply but the difficulty of aligning effective supply with actual demand under tax compliance constraints.