Chinese spot price of 1# refined copper (Cu:≥99.95%) fell by Yuan 80/tonne day on day to Yuan 66,178/tonne on December 2, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking decreased by Yuan 65/tonne day on day to average at Yuan 66,370/tonne, running in the range of Yuan 66,300-66,440/tonne. Moreover, its premium rose by another Yuan 40/tonne day on day to Yuan 430/tonne today.
Refined copper transactions in Shanghai and Guangdong remained active. Due to limited imported copper clearance, supply in Shanghai market was tight which drove spot premium higher. By contrast, refined copper transactions in North China and Southwest China were light. Although COVID control policies have eased, it still needs time for downstream producers to restart production.
The trading volume of refined copper rods in China remained light today. Most of the producers in East China transacted 100-200 tonnes. Enterprises in South China and North China were concerned about copper prices declining and purchased based on order books.
Secondary copper rod transactions remained sluggish. Producers in East China delivered dozens of tonnes and companies in Jiangxi province transacted 200 tonnes. Fabricators in Yunnan province and Chengdu city cut or halted production due to the hardness to source copper scrap.
Copper scrap trading in South China improved. With the cancellation of COVID control in Guangdong, the transportation block was solved, which stimulated processing enterprises to restock. However, as scrap supply remained tight, the transaction improvement was moderate.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com