Copper Scrap Market Stuck in Neutral Amid Refining Price Volatility
The copper scrap market in China experienced mixed trends last week, with refined copper prices rising and then falling, while copper scrap prices followed a similar trend but at a slower pace. As a result, the refined-scrap copper price spread widened.
Looking ahead, despite expectations of improving September consumption, persistently tight spot supply is expected to keep copper scrap prices firm. The refined-scrap copper price spread is predicted to narrow due to the constraints of China's reverse-invoicing policy on its scrap sector.
The weekly average import prices for red copper scrap (99%-99.5% Cu) in China increased slightly last week, while China's copper scrap import profit fluctuated sharply, ranging from -Yuan 1,383.93/tonne to Yuan 460.81/tonne. The constraints of the reverse-invoicing policy on China's scrap sector will be hard to ease in the near term, and invoice shortages are likely to intensify, keeping demand for imported scrap strong.