Sharp fall in refined copper prices has limited effect on copper scrap market

摘要

In recent years, changes in scrap discounts closely mimicked movements in refined copper prices (see chart). However, the effect of the 9.5% fall in the average LME copper cash price in January from the prior month had a seemingly limited effect. Admittedly, scrap discounts narrowed in all major regions of consumption as some scrap traders left the market, but weak scrap demand prevented the market from tightening strongly.