Chinese spot price of 1# refined copper (Cu:≥99.95%) fell by Yuan 166/tonne day on day to Yuan 66,214/tonne on December 7, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking decreased by Yuan 245/tonne day on day to average at Yuan 66,245/tonne, running in the range of Yuan
66,180-66,310/tonne. Moreover, its premium plunged by Yuan 265/tonne day on day to Yuan 225/tonne today.
Refined copper transactions in China turned weak today. Traders in Shanghai market intended to deliver approaching the end of the year, besides, imported copper entered, which dragged down the spot premium significantly. Spot premiums in Guangdong province, Chongqing city, and Tianjin city also decreased following Shanghai by Yuan 50/t, Yuan 30/t, and Yuan 120/t, respectively. However, downstream procurements stayed light even though spot premiums declined.
The trading volume of refined copper rods in East and North China became active with the decline of copper prices. Besides, end users shifted from secondary copper rods to refined copper rods due to unsatisfied price spread. Most of the producers in East China transacted 500-700 tonnes and trade for large enterprises reached 1,000-1,400 tonnes. By contrast, refined copper rod transactions in South China kept weak due to the concern about copper prices. Some producers reflected that delivery fell below 200 tonnes.
Secondary copper rod transactions remained sluggish in East and North China. Mysteel learned that one company in East China transacted only three trucks today and trading volumes in North China fell to only 100 tonnes. On the contrary, delivery in South China increased. Although the price advantage of secondary copper rods shrank, falling copper prices stimulated end users' procurement. Most transactions in Jiangxi province and Guangdong province reached 300 tonnes.
Copper scrap trading in China improved slightly today. Scrap liquidity in North China strengthened due to the easing of COVID policies and scrap holders delivered moderately. Some processing enterprises in East China prepared to restock for Spring Festival but the volume was limited due to supply tightness and price uncertainty.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com