Copper Scrap Trading Plunges Amid Falling Prices and Scarce Supply

Copper scrap trading has shrunk in China due to falling prices and scarce supply. The decline in copper prices led to an increase in downstream purchasing sentiment, while spot premiums surged across major markets on August 18.

The refined copper trading in China rebounded on the same day, but copper scrap trading plummeted as holders were reluctant to sell at low prices. The ongoing industry tax policy adjustments also contributed to this decline, making it difficult for processors to turn a profit.

Additionally, the real estate sector's adjustment period has reduced the output of related scrap materials, exacerbating the scarcity of brass scrap and pushing up supporting scrap prices. This has further dampened processors' profits.