1.Scrap copper price trends
Table: Summary of copper scrap prices in major markets
Remark:
The prices listed above are the prices delivered in cash.
Price units listed above: Yuan/ton
2.Scrap copper refined scrap difference trend chart
Analysis: Today’s refined waste difference is 1,450 yuan/ton, an increase of 2 yuan/ton. The current refined waste difference is above the reasonable price difference of 1,377 yuan/ton.
Note: The difference between fine and waste is the difference between the tax-included electrolytic copper price and the tax-included bright copper (99%).
3. Market transactions
4. Market Review
Copper prices fell back and trade cooled down. There are not many upstream traders to deliver early orders. Some traders have already completed replenishment over the weekend. Therefore, today's trade is not very popular and continues to lower prices. Among them, small and medium-sized cargo traders are facing greater financial pressure and have once again chosen the storage mode. , reduce financial pressure. Due to the poor performance of finished product orders by downstream manufacturers and the strong spot price of scrap copper, although there is purchase demand, the quotations are difficult to meet traders' psychological expectations. The supply of goods circulating in the market flows to manufacturers with price advantages. Before the raw material inventory is exhausted, the purchasing pace of copper companies will be reduced. keep it steady. In terms of scrap brass, it is difficult to find supply in the market. The holders are in short supply and have difficulty replenishing their stocks. The competition for spot premiums is becoming more and more intense. Basically, as soon as there is a circulating spot, it will be ordered away. The production pace of downstream manufacturers is restricted by insufficient raw materials. The production of a few small and medium-sized enterprises has been intermittent, making procurement more difficult.
5. Market perspective
Some upstream merchants are afraid of falling prices and choose to ship small quantities at high prices, while most merchants maintain a mentality of holding back their goods and reluctant to sell. Traders reported that due to the drop in market prices and the sudden drop in weather, the volume of goods circulating in the market was significantly reduced and the transaction performance was poor. Downstream copper plants do not have much inventory of raw materials and finished products, and there is still demand for scrap copper purchases. However, due to the high spot price of scrap copper and the difficulty in finding affordable sources, scrap copper replenishment is slow.
6. Forecast
Disturbance at the macro level still exists. The Fed's Powell reiterated its cautious attitude in his speech, and there is still the possibility of raising interest rates in the future. Fundamentally, copper inventories remain at a normal low level, but the destocking speed has slowed down, and the high spot price has a certain inhibitory effect on market consumption; some downstream copper companies still have pressure to deliver orders, but compared with The previous situation of tight production and sales has improved significantly, but the number of new orders has not increased, and the high consumption performance in the early stage has gradually cooled down. Looking ahead, this week is the time for market delivery. Considering that the current spot price is relatively tight, high water premiums or high monthly differences are likely to continue, but there will be greater pressure for further increases; demand-side releases are beginning to face certain resistance, and the number of new orders Growth pressure is high, and as the end of the year approaches, there may be fewer instances of further expansion of profit-sharing deals. It is expected that copper prices will continue to fluctuate this week, and the characteristics of near strength and far weakness will continue.
