[SMM Analysis: Copper Prices Remain Elevated, but Why Has Overseas Copper Scrap Supply Yet to Increase Significantly?] Despite elevated copper prices, overseas copper scrap supply remains tight. Earlier inventories were largely released from Q4 2025 to Q2 2026, while new scrap generation is slow. High funding costs, stronger local absorption and US-Iran-related shipping delays have further limited tradable supply, supporting payabilities.

[SMM Analysis: H1 2026 Secondary Copper Rod Market Semi-Annual Report: Compliance Reshapes Pricing Logic, Supply-Demand Standoff Throughout] In H1 2026, the secondary copper rod market completely broke away from the traditional pricing framework of "copper prices – supply and demand." It was primarily impacted by the dual policy shocks of "reverse invoicing" moving from transitional verification to full implementation and the clearance of local irregular fiscal and tax incentives (Document No. 770), coupled with wide fluctuations as the most-traded SHFE copper contract retreated from the record high of 113,800 yuan/mt at the start of the year and consistently held the threshold of 100,000 yuan/mt in mid-year. The entire industry found itself in a deep stalemate characterized by "policies setting the structure, invoices locking in transactions, and copper prices setting the pace," with the operating rate plunging sharply YoY, and enterprises generally walking a tightrope between compliance pressure and weak demand.....

[SMM Copper Cathode Rod Flash] Copper rod producers slightly replenished raw materials on demand, with raw material inventory inching up MoM; downstream cargo pick-up slowed, finished product inventories rose, and end-user purchase willingness was weak.

This week (6/22–6/25), the secondary copper rod and copper scrap markets were locked in a deep stalemate, marked by the supply side holding prices firm and holding back from selling, the demand side waiting for further price declines and refraining from purchasing, and persistently sluggish transactions, as copper prices continued to fall and approached the psychological threshold of 100,000 yuan/mt

【SMM Copper Cathode Rod Express】China's copper rod producers are actively exploring markets outside China, with export orders providing strong support. Meanwhile, copper price fluctuations narrowed this month and downstream demand outside China remained stable, jointly underpinning a steady export trend in May, down 0.47% MoM.

[SMM Copper Cathode Rod Flash] This week, the operating rate of copper cathode rod producers rose 1.6 percentage points WoW, beating expectations by 6.16 percentage points. The sharp retreat in copper prices spurred concentrated price fixings among downstream wire, cable, and enamelled wire users, and new orders at copper rod mills drove an above-expectation recovery in operating rates. Demand from top-tier wire and cable players rebounded markedly, while enamelled wire orders recorded only a mild improvement, without explosive growth.