Copper Prices Surge Amid Scarce Transactions

The Shanghai Metals Market (SMM) Secondary Copper Daily Review reported that copper prices surged on August 3, reaching 105,830 yuan/mt by 11:30 am. This was an increase of 170 yuan/mt from the previous trading day. Despite the high prices, transactions in the secondary copper raw material market were scarce throughout the day.

The average spot premiums rose to 280 yuan/mt, up 20 yuan/mt from the previous day. Secondary copper raw material prices also increased by 100 yuan/mt from the previous day. The sales sentiment index for secondary copper raw materials reached 2.52, while the procurement sentiment index rose to 2.01.

The price difference between copper cathode and copper scrap narrowed to 3,455 yuan/mt, down 1,068 yuan/mt from the previous trading day. According to SMM's survey, demand for tax-unpaid copper scrap remained sluggish due to policy issues. However, tax-paid copper scrap continued to be in high demand.

Scrap utilization enterprises indicated that restrictions on 'reverse invoicing' were expected to be gradually lifted in the Jiangxi region. Some enterprises had already resumed production. This development was seen as a positive sign for the market.