Copper Scrap Prices Hold Firm Amid Volatile Copper Market
LME copper prices experienced wild swings throughout the week, ranging from $14,368.5/mt to $14,092/mt before rebounding back up to around $14,340/mt. Despite this volatility, LME payable indicators for copper scrap outside China remained high due to a tight supply landscape and low inventory levels in major consuming regions.
New supply releases are limited, and the traditional September peak-demand season is approaching, supporting copper scrap prices. The current LME copper term structure remains in a backwardation structure, with spot premiums for copper cathode at high levels, further widening the quoting room for some traders.
This has led to operational gains for certain traders, allowing them to accept higher payable indicators when purchasing copper scrap based on LME 3M. Market inquiries and purchasing sentiment improved this week compared to before, with downstream enterprises holding relatively optimistic expectations for copper price trends.