Seasonal demand lull starts to push Chinese copper stocks higher

From think.ing.com

Restriction on category 6 copper scrap imports by China go into effect from today (1 July) ⇒ category 6 scrap imports now subject to import quota approval • The recent scrap copper import quota approved including category 6 scrap copper was reported at 240kt → but the approval took longer than the market anticipated; • A tighter scrap availability has helped to narrow the spread between cathode and scrap and knocked down the cost advantage by using scrap that used to be much cheaper ⇒ less substitution to cathode and in favour of cathode demand. Inventory movements diverge between China and ex-China market: ... (full story)