SMM News on May 30:
The % change in copper prices narrowed further to 400-600 yuan/mt during the week. The price of bare bright copper in Guangdong was 72,500-72,700 yuan/mt, up 100 yuan/mt WoW. At the beginning of the week, copper prices rose, but suppliers of secondary copper raw materials were reluctant to sell, expecting prices to break through 79,000 yuan/mt before selling. Subsequently, copper prices continued to trade sideways. Many suppliers were concerned about a sudden drop in copper prices, coupled with expectations of a bearish outlook for copper prices after the Dragon Boat Festival. As a result, many suppliers chose to sell at higher prices. The weekly raw material inventory data of secondary copper rod enterprises showed 55,530 mt, an increase of 2,070 mt WoW.
However, secondary copper rod enterprises are still facing losses due to high raw material prices. Most of them have no plans to stockpile before the holiday. They are willing to purchase more secondary copper raw materials only because suppliers are willing to sell, to avoid a tight supply of raw materials caused by another sharp fluctuation in copper prices after the holiday.
Looking ahead to next week, the continued sideways trading of copper prices will only dampen the selling sentiment of suppliers of secondary copper raw materials. With high-grade materials remaining at high prices, secondary copper rod enterprises may shift their procurement focus to low-grade secondary copper raw materials used in the production of copper anodes.
