Operating rates in June are expected to stand at 47.3%, up 2.46 percentage points month on month and 4.06 percentage points year on year. Entering June, positive macro sentiment bolstered copper prices, prompting copper scrap suppliers to sell cargoes at highs. As such, copper scrap supply has increased in June.
The operating rates will pick up. However, the support for copper prices from fundamentals will be weak in the off-season. Copper prices will gradually return to fundamentals. The market shall be cautious over the disruptions of copper prices to the operating rates of copper rod plants using copper scrap.
