China copper smelters bracing for shortage of vital scrap metal
Around 30% of China’s refined copper production used scrap metal as a feedstock in 2023.
The copper price rose on Wednesday, underpinned by tightening supplies ahead of a long weekend in China.
Copper for delivery in July was up 0.5% on the Comex market in New York, touching $3.90 per pound ($8,580 per tonne).
Click here for an interactive chart of copper prices.
The most-traded July copper contract on the Shanghai Futures Exchange climbed 0.9% to 69,160 yuan ($9,615.71) per metric tonne, hitting its highest since April 20.
Chinese markets will be closed on Thursday and Friday for holidays.
Higher offers amid tight supply in the spot market lifted copper premium to an eight-month high of 640 yuan a tonne.
Supply has tightened because of recent unfavorable import conditions, partly due to a weakening yuan, making it more costly to buy the metal.
Market participants expect to see some more copper exports from China, which is traditionally a buyer of the metal.
(With files from Reuters)
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