SMM, February 28:
According to SMM, the weekly operating rate of China's secondary anode plate enterprises was 55.89% during February 21-27, 2025, down 3.25% WoW; the weekly operating rate of secondary copper rod enterprises was 33.67%, up 2.92% WoW.
In February, secondary copper rod prices increased. On February 28, the discount of 8mm secondary copper rods meeting national standards in Jiangxi against copper futures was 370 yuan/mt, while the spot processing fee for anode plates was approximately 750 yuan/mt. This led to some secondary anode plate capacity shifting to secondary copper rods, resulting in a decline in the operating rate of secondary anode plates. Additionally, from the raw material perspective, the center of copper prices slightly moved downward during the week, tightening the supply of secondary copper raw materials in the market.
SMM expects the operating rate of secondary anode plates to continue declining in March. If copper prices fluctuate downward, the willingness of secondary copper raw material suppliers to sell may weaken, the price difference between primary metal and scrap may continue to narrow, and the domestic supply of copper scrap raw materials may further decrease. After mid-February, the SHFE/LME price ratio showed a significant inversion. Moreover, due to uncertainties surrounding Trump's inauguration, some traders temporarily halted imports from the US, which is expected to reduce copper scrap imports. Although the spot processing fee for anode plates may slightly decline in March, there remains a certain price spread with secondary copper rod prices, leading to some capacity continuing to shift between the two.
