Copper Scrap Market Sees Divergent Quotations Amid Trading Strategy

The global copper scrap market has seen a divergence in Millberry quotations recently. Bids range from around 98.5% to nearly par, depending on factors like buyer type, pricing basis, and trading strategy.

Mainstream traders follow a cautious approach, accounting for financing, transportation, hedging, quality, and resale risks, leaving them with limited margins. As a result, most traders have low acceptance of payabilities above 99% and tend to remain cautious in their bids.

In contrast, direct purchases by downstream consumers can be priced higher due to their ability to process copper scrap directly without the need for resale and their adherence to stricter quality requirements. Some copper rod and semis producers may accept Millberry payabilities of around 99.5% to secure feedstock and reduce reliance on refined copper.

The high domestic spot premiums in China, driven by tight refined copper availability, have lifted local copper scrap selling prices. Traders with physical inventories can sell existing stocks at relatively high domestic prices before purchasing later-arriving imported cargoes to replenish their inventories.