Tight Copper Scrap Supply Keeps Payabilities Elevated

The global copper scrap supply remains tight due to low social inventories across major markets in China, Japan, South Korea, and India. This has led to elevated payabilities for various types of copper scrap, including Millberry at around 98.5-99%, No.1 copper at 97-98%, and No.2 copper at 94-96%. The tight concentrate supply is also supporting demand for recycled copper feedstock.

Despite copper prices trading near historical highs, the scarcity of copper scrap has kept payabilities firm. This situation is unlikely to improve significantly in the near term, suggesting that copper scrap payabilities will remain elevated. According to data from SMM, a leading source of market intelligence, social inventories are at low levels across these major markets.