Copper Prices Soar, Scrap Utilization Enterprises Hold Back

Copper prices surged on August 26, reaching as high as 109,440 yuan/mt at closing, up 1,320 yuan/mt from the previous trading day. The average spot premium also increased to 310 yuan/mt, a rise of 60 yuan/mt from the previous day.

The price of secondary copper scrap rose by 300 yuan/mt day-on-day, while the sales sentiment index for secondary copper scrap reached 2.84. However, the procurement sentiment index fell to 1.71.

A significant difference between copper cathode and copper scrap prices emerged, with a gap of 5,061 yuan/mt, up 1,041 yuan/mt from the previous day. The price difference between copper cathode rod and secondary copper rod was also substantial at 1,880 yuan/mt.

According to an SMM survey, despite the sharp increase in copper prices, scrap utilization enterprises expressed reluctance to purchase at high prices. As a result, they will resume procurement only after the current squeeze ends.