Chinese spot price of 1# refined copper (Cu:≥99.95%) fell by Yuan 643/tonne day on day to Yuan 68,897/tonne on June 26, 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 68,950/tonne, running in the range of Yuan 68,870-69,030/tonne. Moreover, its premium fell by Yuan 100/tonne day on day to Yuan 350/tonne.
Refined copper transactions in China kept modest. Imported copper entrance increased in Shanghai market post-holiday and some companies faced capital pressure approaching the end of the month. Thus, copper spot premiums decreased sharply. Besides, downstream producers in Guangdong province kept standing aside and purchased based on orderbooks even though both prices and spot premiums declined.
The trading volume of refined copper rods in East China and South China decreased compared with the pre-holiday while delivery in North China improved. Transactions in East China fell to 200-400 tonnes for small and medium producers and 500-600 tonnes for large enterprises. Delivery in North China increased to 500-600 tonnes today with the retreating of copper prices.
Secondary copper rod transactions in East China and South China weakened. The price spread between refined and secondary copper rods narrowed in Jiangxi market and orders from end users kept flat compared with pre-holiday. By contrast, the purchasing enthusiasm of end users in North China increased with the decline of copper prices and transactions reached 300 tonnes.
Scrap transactions in China kept weak. The whole market has not fully recovered from the holiday yet and scrap holders in East China and South China held a wait-and-see stance. Scrap holders in North China turned bearish on copper prices and delivered with thin profits to avoid loss. Processing enterprises have restocked sufficient raw materials before the holiday and focused more on the sales of finished products.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com
