The supply of scrap copper is tight and the market trend is not obvious

In September, the domestic scrap copper supply maintained a tight situation, the arrival of large traders in Foshan was scarce, and the overall scrap copper supply was less than half of the peak season, but there are signs of easing supply, and the overall supply in the northern region has begun to show signs of easing, and the available inventory of manufacturers has increased
.
Approaching the traditional domestic peak season, the downstream terminal demand has not yet fully exerted, and the traditional peak season effect is limited
.
In terms of finished product orders, with the stable price difference between refined waste and abundant raw materials, the substitution effect of refined copper has eased, and the downstream orders for copper rods before the holiday are better, mainly due to the concentrated replenishment of downstream stocks before the Mid-Autumn Festival and National Day
.
In addition, affected by the epidemic, the recent upgrading of control in various parts of Fujian, the pressure on logistics has increased, and the market transaction in Quanzhou Nan'an and other places has been restricted, and the price has also declined
significantly.
The market trend is not obvious, and the willingness of merchants to reduce inventory before the holiday is the mainstay
.

In the third quarter, the domestic supply of copper scrap was tight, and the price difference of refined scrap including tax fell
significantly.
Among them, in mid-to-late August, there was an inversion of the refined waste spread, and then the price inversion was repaired, but the refined waste price spread was still far below the reasonable level
.
Domestic copper scrap imports have continued to decline since May, and domestic copper scrap production has also decreased simultaneously, and among the major overseas copper scrap suppliers, China's copper scrap imports from Malaysia and Japan have fallen
significantly.
Copper scrap imports are the main source of copper scrap supply in China, so it is particularly important
to analyze the copper scrap import environment in Malaysia and Japan.

Malaysia's Ministry of International Trade and Industry announced in early September that the temporary grace period for the tightening of scrap metal import standards, which was scheduled to expire on August 31, will be extended for two months, and will be officially implemented after October 31, requiring the import of scrap metal content of at least 94.
75%, which is similar to China's current recycled copper raw material standards, so Malaysia's local recycling and processing enterprises will not be able to introduce seven types of copper scrap and some low-grade six types of scrap, and then cannot enter China through dismantling and re-exporting , which will further aggravate the tight domestic scrap copper supply in the fourth quarter
.