Since the second quarter of this year, the main futures prices of copper in Shanghai began to rise unilaterally, with a big increase of more than 50% in the range.

    In China's copper consumption market, the consumption of scrap copper accounts for about a quarter. Does the rise of copper price affect the recovery of scrap copper?

    The main futures of Shanghai copper rose unilaterally in the second quarter

    Copper scrap price rises

    Reporters in a waste recycling station to see that there are only a few motors containing waste copper on the ground.

    The boss of the recycling station told reporters that after recycling copper scrap is generally directly sent to the market to sell or sell to scrap copper processing plant, but now the waste copper is more difficult to collect, and there is no inventory in the recycling station.

    The boss of a waste recycling station in Shanghai said that he could not receive any price increase. If there was no copper, he would usually collect a little bit piecemeal, such as decorative small thread ends and air-conditioning pipes. Otherwise, he could not receive it.

    The copper recovered from the waste recycling station is priced according to the copper content. The copper content of red copper reaches 99.9%, and the recovery price is higher, while the copper recovery price of brass with only 60% copper content is relatively low.

    The head of another recycling station said that the current purchase price of scrap copper has increased significantly compared with the end of the first quarter.

    Boss of a waste recycling station in Shanghai: brass is more than 20 yuan per kilogram, and red copper pipe is about 43 yuan per kilogram, which is much higher than before. In the new year, only 33 yuan per kilogram was used.

    The reporter learned that China's annual supply of scrap copper raw materials is about 800000 tons, and the import volume of scrap copper is about 1.2 million tons. Waste copper raw materials are generally used to produce recycled refined copper or waste copper rods. Terminal enterprises process waste copper products into power cables or spare parts in air conditioning, refrigerators and other equipment.

    The price rise of scrap copper in this round is greatly affected by the epidemic situation. In addition, the second quarter of this year is the peak time for copper enterprises to deliver goods. Therefore, the demand for copper in the market has increased greatly.

    According to industry insiders, the outbreak of outbreaks in Chile, Peru and other major global copper suppliers has led to the failure of normal operation of copper mines and the interruption of transportation. The contradiction between supply and demand directly led to the reduction of domestic copper inventory from 380000 tons to about 100000 tons.

    Chile's copper industry actively responding to the epidemic

    Copper price rise brings good

    Chile is rich in mineral resources, and nearly one third of the world's copper production comes from Chile. As novel coronavirus pneumonia affected by Latin America, is there a serious problem in the world? What is the impact of rising copper prices in the international market on Chile?

    In response to the epidemic, Chile's major mining companies have adopted a rotation policy of "14 days of work and 14 days of rest". Up to now, 3264 people have been diagnosed in the copper industry in the country, with an infection rate of less than 2%. The Chilean government believes that the annual decline in copper production can be controlled within 200000-240000 tons.

    Recently, copper prices on the New York Mercantile Exchange and the London Metal Exchange have been hovering around $2.9 per pound, which is also the high price for nearly a year and a half.

    The expectation of the decline of copper production in the international market and the demand for the recovery of the international economy are the two main reasons to stimulate the rise of copper price. As a major trade partner of Chile, China's economy shows a good recovery momentum, which also gives Chile's mining industry a positive signal.

    Livillos, vice chairman of the Chilean copper Council: the recovery of China's economy and the infrastructure projects announced by China are definitely a positive signal for Chile, especially for the mining industry.

The author's opinion is not free from the responsibility of the original website. This site will not bear any legal liability, if you have infringed upon your rights, please contact us in time to delete.

Disclaimer: Some pictures and texts on this site are collected from the Internet and are only for learning and communication. The copyright belongs to the original author and does not represent the views of our site. This site will not bear any legal responsibility. If your rights are violated, please contact us to delete it in time.