Copper Scrap Market Sees Narrowed Spread Amid Rising Prices

Last week, China's refined copper prices rose from their previous week levels, while copper scrap prices followed suit but at a slower pace. The tax-inclusive spread between refined and scrap copper prices narrowed due to the increase in copper scrap invoice points to 12% in August from 10.5% in July.

The weekly average import prices for red copper scrap (99%-99.5% Cu) in China increased slightly last week, mirroring the rise in copper and copper scrap prices. However, domestic and overseas copper scrap prices fluctuated, keeping China's copper scrap import margins deeply negative at -Yuan 2,203.61/tonne to -Yuan 1,013.74/tonne.

Despite higher copper scrap prices boosting spot supply, the increase in market circulation was constrained. This is because upstream traders were reluctant to purchase at high prices, keeping buying quotes conservative. Meanwhile, brass scrap trading activity remained limited due to weak end-user demand and persistently low raw material inventory at enterprises.