A low inventory situation for copper scrap in China should signal a market rebound, but low-priced cathode on the market is keeping any such rebound in check.
According to a report from TopRecycle (www.TopRecycle.com), buyers in Ningbo of Zhejiang are looking for scrap, but will decline to buy it if they can purchase readily available copper cathode instead for the same price.
Scrap processors in China are thus keeping their processing activities limited and their inventories low until they see a market more willing to purchase at a price they like, according to TopRecycle.
If there is any good news from China, it might be that some melting facilities seem to have quickened the pace of their schedules coming out of the Chinese New Year holiday.
The situation with zinc remains lackluster, according to TopRecycle, with melting facilities retaining light schedules after the New Year holiday.
Even with their light schedules, “the most difficult thing for manufacturers is raw material procurement, especially zinc scrap,” according to TopRecycle.
Part of the problem stems from an unwillingness of either buying or selling parties to take any financial risk to complete transactions.
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