Chinese spot price of 1# refined copper (Cu:≥99.95%) fell by Yuan 117/tonne day on day to Yuan 66,074/tonne on December 30, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 5/tonne day on day to average at Yuan 66,195/tonne, running in the range of Yuan 66,090-66,300/tonne. Moreover, its discount shrank rapidly by Yuan 145/tonne day on day to a premium of Yuan 25/tonne today.
Refined copper transactions in China kept freezing at the end of the year except for Shanghai market. Due to the limited spot supply in Shanghai market today, traders increased the premium significantly. By contrast, traders in Guangdong market cut the premium by Yuan 50/t, but downstream held a wait-and-see stance.
The trading volume of refined copper rods in China remained light, with producers in South China transacting 100 tonnes and most companies have begun a holiday. Mysteel learned that fabricators in Guangdong province prepare to begin the Spring Festival Holiday on January 5.
Secondary copper rod transactions in Jiangxi province with low processing fees slightly improved, at a volume of 300 tonnes. However, trading in North and East China remained sluggish on the last working day of 2022.
Copper scrap trading in China kept poor. Scrap holders in East China intended to deliver to reduce inventory, however, processing enterprises purchased based on order books. The scrap supply in South and North China remained tight and transactions in these regions were extremely limited. Mysteel learned that one trader in Hebei province purchased 23 tonnes of copper scrap at Yuan 60,800/t.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com