Copper Prices Slide as Chinese Scrap Market Demand Falters

Copper prices weakened on July 29, with the futures closing price reaching 104,940 yuan/mt, down 50 yuan/mt from the previous trading day.

The average spot premiums stood at 280 yuan/mt, up 5 yuan/mt from the previous day. Copper scrap prices dropped 200 yuan/mt from the previous day, and the sales sentiment index for copper scrap fell to 2.42.

According to a survey by SMM, many secondary copper rod enterprises experienced a gradual slowdown in downstream cargo pick-up due to sufficient raw material inventories. As a result, their demand for copper scrap was low.

Copper scrap traders noted that market circulation did not decline notably, but as demand decreased, suppliers had to edge down prices to facilitate shipments.