Chinese spot price of 1# refined copper (Cu:≥99.95%) increased by Yuan 198/tonne day on day to Yuan 68,717/tonne on December 11, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 250/tonne day on day to average at Yuan 68,770/tonne, running in the range of Yuan 68,710-68,830/tonne. Moreover, its spot premium fell by Yuan 40/tonne day on day to Yuan 100/tonne.
Refined copper transactions in China had no improvement today. The spot premiums of mainstream spots in the Shanghai market were mainly quoted at about Yuan 170-200/tonne during the early trading period. Owing to the large number of domestic spots being transported to the market over the weekend and the expectation of more imported copper customs clearance, downstream enterprises showed a cautious attitude and the hope for lower premiums in procurement. Traders therefore reduced the premiums to Yuan 90-110/tonne, then achieved concentrated transactions. Although the futures back narrowed to around Yuan 350/tonne today, the premiums are expected to remain weak in the face of contract rolling.
The transactions of refined copper rods performed lightly in China's main markets today. Due to the continuous rise in copper prices and the loosening of raw material supply, more traders and downstream customers began to bearish the refined copper rod prices. Especially in the face of still high futures backs, bulk order transactions were not promoted despite lower processing fees by processing enterprises. According to Mysteel's survey, small and medium-sized processing enterprises in East China obtained orders of about 500-800 tonnes today, while large-sized processing enterprises sold about 800-1,200 tonnes.
Secondary copper rod transactions picked up slightly in part of the main markets in China today. The price difference between refined and secondary copper rods expanded today, which boosted the demand in East China. Local traders were also active in promoting transactions. Meanwhile, processing enterprises in South and North China faced difficulty adjusting processing fees due to raw material costs and had weak transaction willingness as they signed too many orders last week. According to Mysteel's survey, the new orders received by processing enterprises in South China today were generally above 100-200 tonnes, while above 300 tonnes by traders who provided lower-priced spots.
Scrap transactions in China were light today. The price of copper scrap rose with refined copper, promoting the willingness of traders to purchase and sell today. However, downstream enterprises had limited acceptance of high-priced spots and most maintained on-demand procurement. The shortage of brass scrap still led to higher premiums. In addition, severe weather in North China hindered transportation and exacerbated the shortage of local supply recently.
Written by Edenlis Huang, huangting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com
