Copper Prices Consolidate at Highs, Suppressing Demand in Ex-China Scrap Market

Copper prices have continued to consolidate at highs this week, suppressing demand and affecting the ex-China copper scrap market. On Monday, LME copper prices opened at $14,063/mt and remained within the $13,950-14,280/mt range throughout the week.

The payable indicator trends for ex-China copper scrap showed some divergence. The payable indicator for bare bright copper stayed high due to tight supply, with mainstream quotations hovering around 98.5%-99%. In contrast, No. 1 and No. 2 copper prices pulled back slightly as affected by maintenance at some smelters and demand curbed by high copper prices.

The transaction payable indicators are mostly around 96%-97% for No. 1 copper, around 95.5% for US No. 2 copper, and mostly around 94.5%-95% for European No. 2 copper.

The continued consolidation of copper prices at highs has further dampened downstream purchasing interest, making the market trading atmosphere sluggish. Some traders became more willing to sell due to the need to recoup funds, leading to moderate price concessions and some pullback in No. 1 and No. 2 copper prices.