Copper Prices Surge on Strong Sales Sentiment, Tight Supply

Copper prices surged late in the week, closing at 105,660 yuan/mt on July 31, up 620 yuan/mt from the previous trading day. The average spot premium was 260 yuan/mt, down 5 yuan/mt MoM.

The sales sentiment index for copper scrap rose to 2.48, while the procurement sentiment index fell to 1.98. This indicates that copper scrap suppliers sold into strength but faced constraints due to policy changes in the Jiangsu region.

Secondary copper rod enterprises suspended production to observe the situation, leading to a decline in market demand for tax-exclusive copper scrap. However, tax-inclusive supply continued to remain tight. In some regions, the invoice tax rate for 13% VAT copper scrap has increased to 11-12%.