Copper Prices Reach New Highs, Suppressing End-User Stockpiling

Copper prices have been fluctuating at highs, causing end-users to suppress stockpiling ahead of the peak season. According to SMM's Secondary Copper Daily Review for August 24, copper futures closed at 107,760 yuan/mt, up 190 yuan/mt from the previous trading day. The average spot premium was 210 yuan/mt, down 65 yuan/mt from the previous day.

Copper scrap prices rose by 400 yuan/mt, while the sales sentiment index fell to 2.73 and the procurement sentiment index dropped to 1.84. The price difference between copper cathode and copper scrap was 3,846 yuan/mt, down 327 yuan/mt from the previous day.

Secondary copper rod enterprises and copper scrap traders have shown insufficient willingness to trade due to stable copper prices. SMM's survey indicates that end-use demand has been falling short of expectations, consistently suppressed by high copper prices.