Chinese spot price of 1# refined copper (Cu:≥99.95%) increased by Yuan 190/tonne day on day to Yuan 68,519/tonne on December 14, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 155/tonne day on day to average at Yuan 68,490/tonne, running in the range of Yuan 68,440-68,540/tonne. Moreover, its spot premium fell by Yuan 65/tonne day on day to a discount of Yuan 85/tonne.
Refined copper transactions in China remained light today. The spot discounts of mainstream spots in the Shanghai market were mainly quoted at about Yuan 60-70/tonne during the early trading period. Due to the expansion of futures backs to Yuan 500-600/tonne and higher copper prices, the market turnover in the morning was low. Higher quality copper, such as 3C-P and ENM, was quoted at a discount of Yuan 50-60/tonne, while others were quoted at a discount of Yuan 100/tonne. As tomorrow will be the delivery date, it is expected that the overall trading volume in the market is not high.
The transactions of refined copper rods weakened in China's main markets today. Due to the arrival of the year-end, the capital control of downstream wire and cable enterprises was stricter, so they only maintained procurement for rigid demand. In addition, they reported that they were waiting for lower pricing to replenish the inventory. According to Mysteel's survey, small and medium-sized processing enterprises in East China obtained orders of about 300-600 tonnes today, while large-sized processing enterprises sold about 800 tonnes.
Secondary copper rod transactions remained sluggish in the main markets in China today. The price difference between refined and secondary copper rods expanded as copper prices rose today. Due to the increase in copper scrap prices, there was not enough room for price adjustment of secondary copper rods. Therefore, the profit margins for processing enterprises decreased. According to Mysteel's survey, the new orders received by processing enterprises in South China today were generally 100-200 tonnes.
Copper scrap transactions in China were also light today. Although copper prices rebounded, some upstream traders remained cautious as they waited for copper prices to continue to rise. Most of the downstream enterprises had piled up raw materials and finished products, so they maintained on-demand procurement.
Written by Claudia Jin, jinzheyuan@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com