Copper price rally sees scrap 'sold above intrinsic value' to China

Chinese importers have been competing for the best-quality copper scrap, citing concerns over future rises in the procurement cost of raw materials while the price rally continues, Fastmarkets has learnt.

Suppliers of top-grade copper scrap in the Asia-Pacific region were selling candy and berry at thin discounts to the price of refined copper, as traded on the London Metal Exchange over the past month.
The LME three-month price of copper was now near its all-time high of $10,190 per tonne, set in February 2011, having reached $9,965 per tonne during trading in the morning of April 27.

“Today we sold some candy/berry to the Chinese at 96% [of the LME copper price], which is not very sensible - it is basically at or above intrinsic value,” an Australian supplier said. “Chinese consumers believe that...

Published

Julian Luk

April 27, 2021

17:55 GMT

London