Chinese spot price of 1# refined copper (Cu:≥99.95%) increased by Yuan 409/tonne day on day to Yuan 68,928/tonne on December 15, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 495/tonne day on day to average at Yuan 68,985/tonne, running in the range of Yuan 68,920-69,050/tonne. Moreover, its spot premium rose by Yuan 110/tonne day on day to Yuan 25/tonne.
Refined copper transactions in China remained light today. Today was the delivery date of contract Cu2312, so offers of mainstream brands in the market shifted to contract Cu2401. Although futures backs narrowed to about Yuan 300/tonne, the higher copper prices made downstream traders cautious. However, with the subsequent futures backs further narrowed, higher quality copper, such as 3C-P, was quoted at a premium of Yuan 330-350/tonne, while others were quoted at a premium of Yuan 300/tonne. Under high copper prices, downstream traders still held a wait-and-see stance with limited demand for purchases.
The transactions of refined copper rods weakened in China's main markets today. As contract rolling approached today, market offerings were disorganized. In addition, higher copper prices suppressed market consumption. Downstream wire and cable enterprises had low purchasing willingness and maintained procurement for rigid demand. According to Mysteel's survey, small and medium-sized processing enterprises in East China obtained orders of about 300-500 tonnes today, while large-sized processing enterprises sold about 600 tonnes.
Secondary copper rod transactions remained sluggish in the main markets in China today. Downstream wire and cable enterprises' willingness to replenish inventory was not strong and only some traders completed transactions with downstream customers by pricing. According to Mysteel's survey, the new orders received by processing enterprises in South China today were generally 100 tonnes.
Copper scrap transactions in China were also flat today. Although copper prices rebounded, upstream traders' purchase prices did not rise significantly, so they did not purchase actively. However, as the price difference between refined copper and scrap expanded in North China, the price advantage of copper scrap appeared. Therefore, downstream enterprises with less inventory had higher purchase willingness.
Written by Claudia Jin, jinzheyuan@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com