Copper Prices Rebound, Scrap Utilization Enterprises Await Opportunities

Copper prices reached their peak on August 10, at 11:30 am, closing at 107,770 yuan/mt. The price dropped by 630 yuan/mt compared to the previous trading day. Despite this decline, copper scrap premiums averaged 80 yuan/mt, a 10 yuan/mt increase from the previous day. Copper scrap prices fell 300 yuan/mt, with sales sentiment indexes at 2.71 and purchasing sentiment indexes at 1.96.

The price difference between copper cathode and copper scrap decreased to 4,404 yuan/mt, down 281 yuan/mt compared to the previous day. The price difference between copper cathode rod and secondary copper rod stood at 1,650 yuan/mt. According to a survey by SMM, downstream scrap utilization enterprises had allocated significant funds for raw material procurement and futures before the copper price peak. As prices pulled back after reaching their short-term peak, these enterprises chose to wait for opportunities to profit from futures rather than act on spot procurements.

Copper scrap suppliers were eager to offload their high-priced inventories during this period, with intraday transactions displaying mediocre performance.