Copper Prices Weigh on Demand as Payables Diverge

High copper prices weighed on demand in August, as buyers reduced procurement volumes and focused on immediate production needs.

No.1 and No.2 copper materials came under greater pressure due to smelter maintenance, seasonal weakness in downstream demand, and historically high copper prices.

By mid-August, No.1 copper payabilities had eased to around 96%-97%, while US No.2 copper materials traded near 95.5% and European No.2 copper materials around 94.5%-95%.

Fundamentally, supply tightness remains the main support for the global copper scrap market, with limited availability of tradable material and relatively low inventories in major consuming regions continuing to underpin high-grade scrap.