Copper Prices Hold Steady as Market Activity Remains Mediocre

Copper prices have stabilized at highs in recent trading days, but market activity remains mediocre. According to data from Shanghai Metals Market (SMM), copper futures closed at 109,200 yuan/mt on August 28, a 230 yuan/mt increase from the previous day. Spot premiums averaged 535 yuan/mt, up 85 yuan/mt from last month.

Copper scrap prices remained unchanged this month, with the selling sentiment index falling to 2.81 and procurement sentiment index dropping to 1.73. The price difference between copper cathode and copper scrap widened to 5,159 yuan/mt, a 315 yuan/mt increase from last month.

Secondary copper rod transactions were sluggish due to end-users' fear of high prices among wire and cable enterprises. Current orders are mainly driven by traders' hedging procurement, according to SMM's survey.