Chinese spot price of 1# refined copper (Cu:≥99.95%) fell by Yuan 12/tonne day on day to Yuan 69,562/tonne on March 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 69,600/tonne, running in the range of Yuan 69,550-69,650/tonne. Moreover, its premium rose by Yuan 5/tonne day on day to Yuan 30/tonne.
Refined copper transactions in China kept modest today with a small increase in copper prices. Downstream held a wait-and-see stance and purchased based on order books as copper prices fluctuated at a high level. Due to the cash needs of traders approaching the end of the month, spot premiums are expected to remain weak in the short term but the downside room is limited as social inventory keeps falling and imported copper clearance slows again.
The trading volume of refined copper rods in China further declined. Transactions in East China fell to 200 tonnes for medium producers and 700-900 tonnes for large enterprises. Delivery in South China decreased to 100 tonnes. High copper prices and capital refunding needs approaching the end of the quarter depressed refined copper rod transactions.
Secondary copper rod transactions in China also decreased compared with yesterday. The price spread between refined and secondary copper rods expanded to Yuan 1300/tonne, however, producers in Jiangxi province were reluctant to deliver due to low profits of the copper rod industry. Meanwhile, secondary rod manufacturers in Guangdong province cut production due to the difficulty in sourcing raw materials. Transactions in Jiangxi and Guangdong remain at 200 tonnes for most producers.
Scrap transactions in China kept light. Scrap holders in East China were waiting for a clear direction of copper prices and stood aside currently. Processing enterprises controlled raw material inventory and purchased based on order books. Brass scrap supply in South China turned tight due to consecutive rainy days. Scrap holders worried to restock and processing enterprises achieved many orders with low profits.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com