Copper Prices Decline Amid Shift in Market Dynamics
Copper futures prices declined by 1,440 yuan/mt to close at 108,440 yuan/mt on September 2. This marks a drop in spot premiums of 120 yuan/mt from the previous month. Secondary copper prices fell by 600 yuan/mt over the same period.
The secondary copper sales sentiment index dropped to 2.84 while the purchasing sentiment index rose to 1.79, indicating a shift in market dynamics. The price difference between copper cathode and copper scrap decreased by 875 yuan/mt, down to 3,329 yuan/mt.
According to SMM's survey, suppliers held back from selling due to the recent decline in prices. Despite secondary copper rod enterprises wanting to take advantage of low prices to purchase copper scrap, suppliers were unwilling to sell at a discount, leading to a significant decline in market trading activity.