Chinese spot price of 1# refined copper (Cu:≥99.95%) fell by Yuan 250/tonne day on day to Yuan 68,647/tonne on June 27, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking decreased by Yuan 315/tonne day on day to average at Yuan 68,635/tonne, running in the range of Yuan 68,560-68,710/tonne. Moreover, its premium fell by Yuan 165/tonne day on day to Yuan 185/tonne.
Refined copper transactions in China kept modest. Downstream demand weakened approaching the end of the month while spot holders faced capital refund pressure at the end of the half year, which resulted in a huge decline in spot premiums. However, downstream producers still held a wait-and-see stance and purchased based on orderbooks.
The trading volume of refined copper rods in East China and North China slightly increased while transactions in South China turned to light. Transactions in East China rose to 300-500 tonnes for small and medium producers and 600-800 tonnes for large enterprises. By contrast, spot delivery in South China almost halted due to capital tightness.
Secondary copper rod transactions in East China and South China remained weak. Traders in Jiangxi market intended to deliver to earn cash while end users lacked of interest to purchase, leading the trading volume to fall to less than 100 tonnes. In contrast, delivery in North China kept active and products with low processing fees were popular.
Scrap transactions in China kept weak. Scrap holders in East China held the inventory with the decline of copper prices while scrap holders in South China began to restock due to low inventory. Processing enterprises have restocked sufficient raw materials and focused on capital refunding.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com
