Along with supply woes, end demand for copper scrap products has also been hit as the overall metals sector suffers in the aftermath of the novel coronavirus outbreak.
“Most retail yards are not accepting material, and industrial accounts are slowing,” a copper scrap trader said. “I am hearing flows are off for most [at a rate of] 50-75% on average.”
A second trader concurred.
“Many operations - especially public-facing retail yards - are closed,” the second copper scrap trader said, adding that end demand “is very quiet, so [there is] no real impact.” That source predicted that “when demand reemerges, we will see spreads likely tighten.”
At least one mill cited a slowdown in the construction sector “as the main reason they are buying less scrap,” according to a third trader.
“Very few big mills are...