Chinese spot price of 1# refined copper (Cu:≥99.95%) decreased by Yuan 212/tonne day on day to Yuan 68,716/tonne on December 18, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking decreased by Yuan 260/tonne day on day to average at Yuan 68,725/tonne, running in the range of Yuan 68,650-68,800/tonne. Moreover, its spot premium rose by Yuan 100/tonne day on day to Yuan 125/tonne.
Refined copper transactions in China remained sluggish today. The spot premiums continued on a downward trend. During the early trading period, higher quality copper, such as 3C-P, was quoted at a premium of Yuan 260/tonne in the Shanghai market, while others were quoted at a premium of Yuan 250/tonne. However, due to the arrival of more imported copper over the weekend and the fluctuation of high copper prices, the downstream was generally cautious, leading to worse-than-expected transactions. The quotes of the market mainstream brands were lower during the later trading period and the spot premium had a slight upward trend. However, the spot premium was more difficult to rise because of the limited decline of copper prices and the arrival of imported copper this week.
The transactions of refined copper rods weakened in China's main markets today. Downstream customers were afraid of higher refined copper rod prices as copper prices rebounded after the contract rolling. Therefore, although the processing fees and copper prices decreased slightly, the orders received from downstream wire and cable enterprises were fewer at present. According to Mysteel's survey, large-sized wire and cable enterprises in East China had high purchasing willingness, while small and medium-sized wire and cable enterprises maintained procurement for rigid demand.
Secondary copper rod transactions presented differential in the main markets in China today. The transactions in South China recovered today but were mostly concentrated on low-priced goods and traders replenished the inventory with lower prices. In contrast, the transactions in East China and North China were flat with high copper rod prices. 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 light today. The spot in the market was less, and the quotation did not meet the expectations of traders. Therefore, most of them held goods and waited for rising prices. Large downstream enterprises purchased large quantities of raw materials to complete production plans, while other enterprises kept on-demand purchases.
Written by Claudia Jin, jinzheyuan@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com