FOCUS: Global race for copper scrap intensifies with no finish line in sight

Over the past month, Chinese importers have been keen to buy overseas copper scrap at more competitive prices, with scrap production shrunk by the effects of the Covid-19 pandemic, as well as disruptions in the supply of substitute copper products from Africa.

“Buy, buy, buy whatever copper scrap, ingots, blister you see on the market. This is what I have been told,” a major Chinese copper smelter source told Fastmarkets.
As a result, the copper scrap No2 copper (birch/cliff), imported into China, 94-96%. LME/Comex discount, cif China, compared with the cost of refined copper, has been stretched thinner in April. Fastmarkets assessed the discount at $0.24-0.265 per lb on April 27, compared with $0.26-0.29 per lb a month earlier.
“Supply globally is the hardest part at the moment,” a Southeast Asia-based scrap trader said.

Copper scrap production has shrunk in several major producing countries due to the restrictions put in place to prevent the...

Published

Julian Luk

April 28, 2020

13:38 GMT

London