Chinese spot price of 1# refined copper (Cu:≥99.95%) rose by Yuan 797/tonne day on day to Yuan 67,652/tonne on October 30, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 825/tonne day on day to average at Yuan 67,690/tonne, running in the range of Yuan 67,630-67,750/tonne. Moreover, its spot premium rose by Yuan 15/tonne day on day to Yuan 280/tonne.
Refined copper transactions in China weakened today. The spot premium in the Shanghai market was mainly quoted at Yuan 250-300/tonne during the early trading period. Owing to tight supply, the quotations for refined copper in East China this morning were scarce, while the premium further increased. Downstream enterprises had a lower acceptance of the rise in copper prices and high premiums as the end of the month approached. However, as low-priced spots were suddenly sold out, traders further increased their premiums to about Yuan 320/tonne Most downstream enterprises in South and North China only maintained their procurement for rigid demand in the face of such rising copper prices
The transaction of refined copper rods obviously cooled down in China's main markets today. The significant increase in copper prices suppressed market consumption. Most processing enterprises in East and South China did not accept new orders, but only focused on delivering existing orders and long-term contract orders. According to Mysteel's survey, small and medium-sized processing enterprises in East China obtained orders of 200-300 tonnes today, while large-sized processing enterprises only sold around 500 tonnes. The high processing fees caused by tight supply suppressed the willingness of downstream enterprises in South and North China to procure. Most local traders have only sold about 200 tonnes today.
Secondary copper rod transactions performed outstandingly in South China while moderate in other main markets in China today. The price spread between refined and secondary copper rods significantly expanded with the surging copper prices, broadening the price advantage of secondary copper rods. Some traders in Southern China actively purchased to replenish inventory. The processing enterprises holding relatively low-priced spots achieved hot transactions today, with a trading volume of 300-500 tonnes.
Scrap transactions in China improved today. The rise in copper prices significantly improved the trading atmosphere in the domestic copper scrap market. According to Mysteel's survey, the current copper scrap price has rebounded to around the cost of most of the inventory held by upstream traders, significantly enhancing their willingness to sell. More and more spots were being released into the market. However, the demand of downstream enterprises remained relatively cautious due to poor sales of products such as brass bars.
Written by Edenlis Huang, huangting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com
