Copper Prices Pull Back as Scrap Utilization Enterprises Wait

Copper prices peaked on August 10, but the subsequent price pullback has left downstream scrap utilization enterprises waiting for opportunities to take profits on futures.

The London Metal Exchange (LME) copper futures closing price was 107,770 yuan/mt at 11:30 today, down 630 yuan/mt from the previous trading day. Meanwhile, the average spot premiums were up 10 yuan/mt Day-Over-Day (DoD), reaching 80 yuan/mt.

Copper scrap prices fell by 300 yuan/mt DoD, with the copper scrap sales sentiment index dropping to 2.71 and the purchasing sentiment index falling to 1.96. The price difference between copper cathode and copper scrap decreased to 4,404 yuan/mt, down 281 yuan/mt DoD.

According to a survey by SMM, downstream scrap utilization enterprises had allocated funds for raw material procurement and futures trading before the recent price peak. With copper prices pulling back after their short-term high, these companies are now waiting for opportunities to take profits on futures rather than engaging in spot procurement.