Copper Prices Plunge as Downstream Demand Slows

Copper prices weakened on July 29, according to the SMM Secondary Copper Daily Review. At 11:30 am, the futures closing price stood at 104,940 yuan/mt, down 50 yuan/mt from the previous trading day. The average spot premiums remained steady at 280 yuan/mt, up only 5 yuan/mt from the previous day.

The copper scrap price dropped significantly by 200 yuan/mt from the previous day, and sales sentiment for copper scrap plummeted to 2.42, while procurement sentiment decreased to 2.03. The price difference between copper cathode and copper scrap increased to 4,047 yuan/mt, up 174 yuan/mt from the previous trading day.

Copper prices have weakened due to a gradual slowdown in downstream cargo pick-up by many secondary copper rod enterprises, which had sufficient raw material inventories. This led to low demand for copper scrap and subsequently lower prices. Suppliers were forced to edge down prices to facilitate shipments as demand decreased, with market circulation not declining notably.