High Copper Prices Dampen Traders' Appetite for Restocking

Copper prices have surged to recent highs, causing copper scrap traders to hesitate to restock. According to data from SMM, the August 7 closing price of copper futures was 108,400 yuan/mt, up 670 yuan/mt from the previous trading day. The average spot premium was 70 yuan/mt, down 10 yuan/mt from the previous day.

The copper scrap sales sentiment index rose to 2.76, while the purchase sentiment index fell to 2.01. This indicates that suppliers are selling rapidly, leaving limited inventory and prompting traders to restock. However, high copper prices have caused them to hesitate, with many unwilling to purchase large volumes hastily.

The price difference between copper cathode and copper scrap was 4,685 yuan/mt, up 660 yuan/mt from the previous day. This significant gap is likely contributing to the traders' hesitation to restock.