Chinese spot price of 1# refined copper (Cu:≥99.95%) rose by Yuan 864/tonne day on day to Yuan 67,042/tonne on December 5, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 835/tonne day on day to average at Yuan 67,230/tonne, running in the range of Yuan
67,140-67,290/tonne. Moreover, its premium had risen for the third working day by another Yuan 55/tonne day on day to Yuan 485/tonne today.
Refined copper transactions in Shanghai and North China turned weak due to rising copper prices. Meanwhile, traders in Shanghai market insisted on high premiums, resulting in downstream producers holding a wait-and-see stance. Trading in Guangdong province and Chongqing city improved due to fading COVID impacts. Mysteel learned that one trader in Guangdong transacted 400 tonnes of refined copper this morning with a premium of Yuan 300/tonne.
The trading volume of refined copper rods in China remained light today. Most of the producers in East China transacted 100-200 tonnes and trading for large enterprises only reached 400-600 tonnes. Mysteel learned that one company in North China delivered 200 tonnes with a processing fee of Yuan 650/t and fabricators in South China transacted about 200 tonnes today. Though the impacts of COVID policies weakened, end users' demand turned poor approaching to the end of the year.
Secondary copper rod transactions remained sluggish though the price spread of refined and secondary copper rods expanded. Producers in East China delivered dozens of tonnes and companies in Jiangxi province transacted 200 tonnes. Producers reflected that it became harder to source secondary copper and the raw material inventories dropped to a low level.
Copper scrap trading in China kept flat compared with the last working day. With higher copper prices, scrap holders delivered actively but processing enterprises maintained to purchase based on order books. One company in Hebei province purchased 22 tonnes of scrap at the price of Yuan 61,700/tonne.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com