Chinese spot price of 1# refined copper (Cu:≥99.95%) fell by Yuan 450/tonne day on day to Yuan 66,168/tonne on December 15, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking decreased by Yuan 470/tonne day on day to average at Yuan 66,175/tonne, running in the range of Yuan 66,090-66,260/tonne. Moreover, its premium fell by another Yuan 25/tonne day on day to Yuan 5/tonne today.
Refined copper transactions in East China improved today. Trading among traders still dominated the market while downstream producers remained cautious and waited for premiums after the contracts rolling of the Shanghai Futures Exchange. Mysteel learned that refined copper spot supply in Guangdong province turned tight today and the spot premium rose by Yuan 50/t, but the transactions were limited.
The trading volume of refined copper rods in East China turned slightly active as copper prices declined. Most of the producers in East China transacted 400-500 tonnes while trading for large enterprises rose to 1,000 tonnes compared with 400-500 tonnes yesterday. The price quotations in South China were chaos, with a price spread of Yuan 300/t. Purchasing from end users weakened due to the big fluctuation in copper prices. Most producers delivered less than 300 tonnes today.
Secondary copper rod transactions in China kept weak. Mysteel learned that one producer in East China only delivered two trucks and companies in Jiangxi province transacted 200-300 tonnes while trading in Guangdong province reached only 100 tonnes.
Copper scrap trading in China became limited. Spot supply in East China was tight as scrap holders held a wait-and-see stance when copper prices fell. Part of processing enterprises tried to purchase due to low inventories but volume was limited. Scrap demand in South China turned light due to the spread of the pandemic.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com