Copper Scrap Prices Struggle with Weak Market Demand
The copper scrap market in China saw a widening of the refined-scrap spread last week due to weak demand and supply, despite a slight increase in prices. The weekly average import price for red copper scrap (99%-99.5% Cu) decreased slightly, mainly due to slowing market consumption.
China's copper scrap import margins remained deeply negative, ranging from -Yuan 1,461.13/tonne to -Yuan 960.45/tonne, making it unattractive for importers. The spot supply in China's copper scrap market was tight due to low inventory levels and reluctance of upstream holders to restock at high prices.
The trading volumes in the Chinese copper scrap market declined week on week last week, as policy uncertainty weighed on downstream production willingness and acceptance of high-priced feedstock remained sluggish. Looking ahead, copper prices are expected to remain elevated in the near term, but the refined-scrap copper price spread may still have room to widen.