Copper Scrap Market Stalls Despite High Prices Amid Pre-Holiday Constraints

Copper scrap market prices remained high in the last few trading days before the National Day holiday in China, but trade volumes were sluggish due to invoice issues and supply availability constraints.

The tax-inclusive price difference between copper cathode and copper scrap stood at a wide range of 3,926-4,526 yuan/mt, with substitution economics favoring copper scrap over cathode. However, the market did not see increased volumes despite the attractive price spread, exhibiting pre-holiday characteristics of 'inflated price spreads, sluggish trading, and stalled stockpiling.'

Traders faced limited arrivals during the Mid-Autumn Festival holiday and had limited sellable inventory before the National Day holiday. Secondary copper raw material prices were revised down month-on-month alongside the pullback in copper prices.

The secondary copper raw material sales sentiment index fell from 2.61 to 2.52, while market supply remained tight. Invoice issues arising from reverse invoicing became a major obstacle to tax-exclusive supply circulation, with domestic supply difficult to trade at scale due to inconsistent implementation standards across regions.