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

April 29, 2020 / www.metalbulletin.com / Article Link

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...

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