Chinese spot price of 1# refined copper (Cu:≥99.95%) rose by Yuan 553/tonne day on day to Yuan 68,106/tonne on March 22, according to Mysteel's assessment.
Specifically, spot prices of 1# refined copper in Shanghai under Mysteel's tracking increased by Yuan 570/tonne day on day to average at Yuan 68,140/tonne, running in the range of Yuan 68,070-68,210/tonne. Moreover, its premium kept flat at Yuan 30/tonne.
Refined copper transactions in China kept modest today. Although the price spread between the April and May contracts of the Shanghai Futures Exchange narrowed to Yuan 100/tonne, downstream producers remain cautious about purchasing due to the approach of the Federal interest rate meeting. Spot premiums are expected to remain low with the entrance of more imported copper.
The trading volume of refined copper rods in East China and North China further weakened with the rebound of copper prices. Transactions in East China fell to 350-450 tonnes for medium producers and 800-900 tonnes for large enterprises. By contrast, delivery in South China improved with an average volume of 200-300 tonnes.
Secondary copper rod transactions in China kept light. The difficulty in sourcing raw materials still depressed the trading volume of secondary copper rods. Meanwhile, the operating rate of cable producers in North China has not fully recovered due to weak demand, which constrained the trading volume of secondary copper rods. Transactions in Jiangxi market and North China remain at 100-200 tonnes.
Scrap transactions in North China improved while the trading atmosphere in East China and South China kept light. Scrap holders in North China delivered actively with the rise of copper prices while holders in other regions remain cautious with the approach of the Federal interest rate meeting. Processing enterprises purchased based on order books.
Written by Ting Ao, aoting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com