Chinese spot price of 1# refined copper (Cu:≥99.95%) fell by Yuan 578/tonne day on day to Yuan 68,302/tonne on February 16, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking decreased by Yuan 625/tonne day on day to average at Yuan 68,330/tonne, running in the range of Yuan 68,260-68,400/tonne. Moreover, its premium fell by Yuan 115/tonne day on day to a discount of Yuan 60/tonne.
Refined copper transactions in China remain weak after the contracts rolling of Shanghai Futures Exchange (SHFE). Delivery between traders dominated the Shanghai market while downstream producers purchased in a small volume. However, due to the beginning of long order delivery in 2023 and limited imported copper clearance, traders were bullish on spot premiums as spot supply is expected to decline.
The trading volume of refined copper rods in China increased today. Delivery rose to 1,000 tonnes in East China and 400 tonnes in South China with the retreat of copper prices. Secondary copper rod transactions in China remain light with less than 200 tonnes of trading volume. End users resumed production slowly and the secondary rod prices kept high due to the cost of raw materials.
Scrap transactions in China cooled down with the decline in copper prices. Scrap holders restocked moderately to lower the costs of inventory while processing enterprises held a wait-and-see stance.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com
